Stock Market Signals for the US and Indian Stock Markets for the Upcoming Week beginning June 1

Indicator	Weekly Level / Change / Significance	Implication for S & P 500	Implication for Nifty*
S & P 500	2107, -0.88%	Bearish	Bearish
Nifty	8434, -0.30%	Neutral**	Neutral
China Shanghai Index	4612, -0.99%	Bearish	Bearish
Gold	1191, -1.24%	Bearish	Bearish
WTIC Crude	60.23, 0.40%	Neutral	Neutral
Copper	2.73, -2.04%	Bearish	Bearish
Baltic Dry Index	589, 0.51%	Bullish	Bullish
Euro	1.099, -0.231%	Neutral	Neutral
Dollar/Yen	124.13, 2.08%	Bullish	Bullish
Dow Transports	8300, -2.15%	Bearish	Bearish
US 10 year Bond Yield	2.10%, -5.42%	Bullish	Bullish
Nyse Summation Index	175, -36.21%	Bearish	Bearish
US Vix	13.84, 14.10%	Bearish	Bearish
20 DMA, S and P 500	2112, Below	Bearish	Neutral
50 DMA, S and P 500	2099, Above	Bullish	Neutral
200 DMA, S and P 500	2042, Above	Bullish	Neutral
20 DMA, Nifty	8301, Above	Neutral	Bullish
50 DMA, Nifty	8438, Below	Neutral	Bearish
200 DMA, Nifty	8324, Above	Neutral	Bullish
India Vix	16.66, -1.71%	Neutral	Bullish
Dollar/Rupee	63.74, 0.40%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	5	6
Bearish Indications	8	8
Outlook	Bearish	Marginally Bearish
Observation	The Sand P 500 is putting in a short term top while the Nifty outperformed last week. The summation index and transports are implying deteriorating market internals. The Vix is also indicating a topping process in the market.
On the Horizon	Greece, PMI’s from US and UK, Australia (RBA), India (RBI), ECB and UK rate decisions, US and Canada employment data.
*Nifty	India’s Benchmark Stock Index
Raw Data	Courtesy Google finance, Stock charts
**Neutral	Changes less than 0.5% are considered neutral

You can check out last weeks report for a comparison.

Stock Market Signals for the US and Indian Stock Markets for the Upcoming Week beginning May 25

Indicator	Weekly Level / Change / Significance	Implication for S & P 500	Implication for Nifty*
S & P 500	2126, 0.16%	Neutral**	Neutral
Nifty	8459, 2.38%	Neutral	Bullish
China Shanghai Index	4658, 8.10%	Bullish	Bullish
Gold	1205, -1.44%	Bearish	Bearish
WTIC Crude	59.99, 0.03%	Neutral	Neutral
Copper	2.79, -4.68%	Bearish	Bearish
Baltic Dry Index	592, -6.62%	Bearish	Bearish
Euro	1.101, -3.91%	Bearish	Bearish
Dollar/Yen	121.53, 1.82%	Bullish	Bullish
Dow Transports	8482, -2.29%	Bearish	Bearish
US 10 year Bond Yield	2.22%, 3.46%	Bearish	Bearish
Nyse Summation Index	274, 7.93%	Bullish	Bullish
US Vix	12.13, -2.02%	Bullish	Bullish
20 DMA, S and P 500	2110, Above	Bullish	Neutral
50 DMA, S and P 500	2096, Above	Bullish	Neutral
200 DMA, S and P 500	2038, Above	Bullish	Neutral
20 DMA, Nifty	8272, Above	Neutral	Bullish
50 DMA, Nifty	8471, Below	Neutral	Bearish
200 DMA, Nifty	8309, Above	Neutral	Bullish
India Vix	16.95, -14.47%	Neutral	Bullish
Dollar/Rupee	63.49, 0.08%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	7	8
Bearish Indications	6	7
Outlook	Marginally Bullish	Marginally Bullish
Observation	The Sand P 500 is at the top of its trading range close to all time highs while the Nifty outperformed last week. The 10 yr bond yields and transports are flashing warning signs. The Vix may be suggesting complacency.
On the Horizon	Greece, EU consumer confidence, Canadian CB Rate Decision, UK, US and Canadian GDP Estimates
*Nifty	India’s Benchmark Stock Index
Raw Data	Courtesy Google finance, Stock charts
**Neutral	Changes less than 0.5% are considered neutral

I have added a new indicator this week, the US 10 year bond yield.  You can check out last weeks report for a comparison.

Grexit will eventually happen, time to position for the next big move in the market

After #Greece defaulted on the #IMF, Greeks rejected the austerity plan proposed by the EU comprehensively. We now have had a bailout package for Greece. The IMF has expressed concerns about joining the bailout adding to the uncertainty. Eventually after all the bailouts a #Grexit may prove to be the only way out. Regardless some key markets are poised for big moves:

Let us take a look at the #Euro first. The Euro appears to have put in a near term top near it's recent highs near the 1.16 level and has been correcting lower. It appears to be poised for a big move and has already corrected below the 1.13 level. Like the Euro 1.11 put with the 1.13 call as a hedge.

Next let us look at #oil which has broken down from its highs near 62$.
Can play the next move likely to the downside to 40$ via the oil 44 put with the 46 call as a hedge or via a strangle on the oil ETF USO. Oil will likely head to 35 in the upcoming months.


Moving onto gold, #Gold seems to be headed for new lows after breaking the 1100 mark. Following the news flow out of Greece and the strong dollar further weakness looks likely despite the recent flight to safety bid. Like the 108 put on the Gold ETF GLD, The 110 call may be considered as a hedge:



Not to forget the #SandP500, which has corrected from its recent highs near 2135 to about 1867. A short term down move to 1900 appears on the cards and can be played via a 1970 put with a 2010 call as a hedge.



 Finally the #Nifty has been breaking down from its recent highs near 8650. Can trade the next big move down to 7800 via the 7900 put with the 8100 call as a hedge.

Big moves in markets likely as Grexit may eventually be in play http://t.co/nw03miaufB pic.twitter.com/UjLObaHsUN

— samuelR (@RajveerRawlin) August 29, 2015