Chart of the Week - Bubbles in History

Bubbles are often created by cheap and easy money in the system. The table below is courtesy Greed & Fear via Seeking Alpha and looks at some of the most notable bubbles in history. Wonder how long is it going to take for this current global central bank engineered asset bubble to pop?

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning January 18

Indicator	Weekly Level / Change / Significance	Implication for S & P 500	Implication for Nifty*
S & P 500	1880, -2.17%	Bearish	Bearish
Nifty	7438, -2.15%	Neutral**	Bearish
China Shanghai Index	2901, -8.96%	Bearish	Bearish
Gold	1089, -1.40%	Bearish	Bearish
WTIC Crude	30.68, -6.69%	Bearish	Bearish
Copper	1.95, -3.30%	Bearish	Bearish
Baltic Dry Index	373, -13.05%	Bearish	Bearish
Euro	1.086, -0.57%	Bearish	Bearish
Dollar/Yen	117.04, -0.34%	Neutral	Neutral
Dow Transports	6689, -3.70%	Bearish	Bearish
High Yield (ETF)	32.73, -2.24%	Bearish	Bearish
US 10 year Bond Yield	2.03%, -4.55%	Bullish	Bullish
Nyse Summation Index	-535.44, -200.42%	Bearish	Neutral
US Vix	27.02, 0.04%	Neutral	Neutral
20 DMA, S and P 500	1996, Below	Bearish	Neutral
50 DMA, S and P 500	2041, Below	Bearish	Neutral
200 DMA, S and P 500	2054, Below	Bearish	Neutral
20 DMA, Nifty	7743, Below	Neutral	Bearish
50 DMA, Nifty	7789, Below	Neutral	Bearish
200 DMA, Nifty	8142, Below	Neutral	Bearish
India Vix	19.42, 9.09%	Neutral	Bearish
Dollar/Rupee	67.76, 1.30%	Bearish	Bearish
Overall	S & P 500	Nifty
Bullish Indications	1	1
Bearish Indications	15	17
Outlook	Bearish	Bearish
Observation	The Sand P 500 and the Nifty were down hard last week. Indicators are bearish but the market is becoming oversold. Looking for downside to continue after an oversold bounce.
On the Horizon	Canada – Rate decision, CPI, New Zealand – CPI, Euro zone – German ZEW survey, Rate decision U.K – CPI, U.S – CPI, China – GDP.
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, FXCM
**Neutral	Changes less than 0.5% are considered neutral

The US market and Nifty fell hard last week. Signals are bearish for the upcoming week. The markets are in crash mode and are likely to continue major breakdowns in 2016 after an oversold bounce. The critical levels to watch are 1900 (up) and 1860 (down) on the S & P and 7500 (up) and 7400 (down) on the Nifty. A significant breach of the above levels could trigger the next big move in the above markets. You can check out last week’s report for a comparison. You can also check out snapshots of the 

S and P 500 and Nifty Indices. Love your thoughts and feedback.

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning January 11

Indicator	Weekly Level / Change / Significance	Implication for S & P 500	Implication for Nifty*
S & P 500	1922, -5.96%	Bearish	Bearish
Nifty	7601, -4.54%	Neutral**	Bearish
China Shanghai Index	3186, -9.97%	Bearish	Bearish
Gold	1104, 4.11%	Bullish	Bullish
WTIC Crude	32.88, -11.30%	Bearish	Bearish
Copper	2.02, -5.62%	Bearish	Bearish
Baltic Dry Index	429, -10.25%	Bearish	Bearish
Euro	1.093, 0.67%	Bullish	Bullish
Dollar/Yen	117.51, -2.30%	Bearish	Bearish
Dow Transports	6946, -7.49%	Bearish	Bearish
High Yield (ETF)	33.48, -1.27%	Bearish	Bearish
US 10 year Bond Yield	2.13%, -6.13%	Bullish	Bullish
Nyse Summation Index	-158, -775.82%	Bearish	Neutral
US Vix	27.01, 48.33%	Bearish	Bearish
20 DMA, S and P 500	2028, Below	Bearish	Neutral
50 DMA, S and P 500	2059, Below	Bearish	Neutral
200 DMA, S and P 500	2058, Below	Bearish	Neutral
20 DMA, Nifty	7791, Below	Neutral	Bearish
50 DMA, Nifty	7846, Below	Neutral	Bearish
200 DMA, Nifty	8167, Below	Neutral	Bearish
India Vix	17.80, 24.81%	Neutral	Bearish
Dollar/Rupee	66.89, 1.00%	Bearish	Bearish
Overall	S & P 500	Nifty
Bullish Indications	3	3
Bearish Indications	14	15
Outlook	Bearish	Bearish
Observation	The Sand P 500 and the Nifty were down hard last week. Indicators are bearish. Looking for downside to continue.
On the Horizon	Australia - Employment data, Euro zone – German GDP, U.K – Rate decision, U.S – Retail sales, consumer confidence, China – Loan & financing data.
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, FXCM
**Neutral	Changes less than 0.5% are considered neutral

The US market and Nifty fell hard last week. Signals are bearish for the upcoming week. The markets are in crash mode and are likely to continue to breakdown in 2016.  The critical levels to watch are 1940 (up) and 1900 (down) on the S & P and 7600 (up) and 7500 (down) on the Nifty. A significant breach of the above levels could trigger the next big move in the above markets. You can check out last week’s report for a comparison. You can also check out snapshots of the S and P 500 and Nifty Indices. Love your thoughts and feedback.