Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning September 5

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2180, 0.50%	Bullish	Bullish
Nifty	8810, 2.77%	Neutral**	Bullish
China Shanghai Index	3067, 0.10%	Neutral	Neutral
Gold	1327, 0.06%	Neutral	Neutral
WTIC Crude	44.44, -6.72%	Bearish	Bearish
Copper	2.08, -0.31%	Neutral	Neutral
Baltic Dry Index	720, 0.00%	Neutral	Neutral
Euro	1.119, -0.07%	Neutral	Neutral
Dollar/Yen	104.01, 2.16%	Bullish	Bullish
Dow Transports	7947, 1.56%	Bullish	Bullish
High Yield (ETF)	36.64, 0.79%	Bullish	Bullish
US 10 year Bond Yield	1.60%, -2.39%	Bullish	Bullish
Nyse Summation Index	788, -10.32%	Bearish	Neutral
US Vix	11.98, -12.23%	Bullish	Bullish
20 DMA, S and P 500	2180, Below	Bearish	Neutral
50 DMA, S and P 500	2153, Above	Bullish	Neutral
200 DMA, S and P 500	2056, Above	Bullish	Neutral
20 DMA, Nifty	8666, Above	Neutral	Bullish
50 DMA, Nifty	8537, Above	Neutral	Bullish
200 DMA, Nifty	7911, Above	Neutral	Bullish
India Vix	12.94, -4.64%	Neutral	Bullish
Dollar/Rupee	66.57, -0.88%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	8	12
Bearish Indications	3	1
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty rallied last week. Indicators are bullish. Markets are at the top of their recent trading ranges. Time to tighten those stops.
On the Horizon	China – New loan data, CPI, Australia – Rate decision, GDP, U.S –ISM non manufacturing data, Canada – Employment data, Rate decision, Euro zone – ECB rate decision, Switzerland - GDP
*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 rallied last week. Signals are bullish 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 2190 (up) and 2170 (down) on the S & P and 8900 (up) and 8700 (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.

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