Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the US Dollar and the British Pound:

Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the US Dollar:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning August 29

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2169, -0.68%	Bearish	Bearish
Nifty	8573, -1.09%	Neutral**	Bearish
China Shanghai Index	3070, -1.22%	Bearish	Bearish
Gold	1326, -1.51%	Bearish	Bearish
WTIC Crude	47.64, -2.99%	Bearish	Bearish
Copper	2.08, -3.81%	Bearish	Bearish
Baltic Dry Index	720, 5.42%	Bullish	Bullish
Euro	1.120, -1.13%	Bearish	Bearish
Dollar/Yen	101.77, 1.62%	Bullish	Bullish
Dow Transports	7825, -1.33%	Bearish	Bearish
High Yield (ETF)	36.54, 0.00%	Neutral	Neutral
US 10 year Bond Yield	1.64%, 3.61%	Bearish	Bearish
Nyse Summation Index	879, -11.42%	Bearish	Neutral
US Vix	13.65, 20.37%	Bearish	Bearish
20 DMA, S and P 500	2178, Below	Bearish	Neutral
50 DMA, S and P 500	2144, Above	Bullish	Neutral
200 DMA, S and P 500	2052, Above	Bullish	Neutral
20 DMA, Nifty	8630, Below	Neutral	Bearish
50 DMA, Nifty	8482, Above	Neutral	Bullish
200 DMA, Nifty	7890, Above	Neutral	Bullish
India Vix	13.57, -6.66%	Neutral	Bullish
Dollar/Rupee	67.16, 0.05%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	4	5
Bearish Indications	11	11
Outlook	Bearish	Bearish
Observation	The S and P 500 and the Nifty fell last week. Indicators are bearish. Markets are breaking down from the top of their recent trading ranges. Time to tighten those stops.
On the Horizon	China – PMI, Canada - GDP, Euro zone – German employment data, CPI, Euro Zone CPI, U.S – Consumer confidence, Employment data, ISM
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, dailyfx.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 and the Nifty fell last week. Signals are bearish for the upcoming week. The Vix is suggesting complacency despite the market making nominal new highs and momentum, breadth and sentiment indicators are showing divergences.  The markets are likely to continue major breakdowns in 2016 which could start any moment now. The critical levels to watch are 2180 (up) and 2160 (down) on the S & P and 8650 (up) and 8500 (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 support and resistance levels of the S and P 500 and Nifty Indices. Love your thoughts and feedback.