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 dollar and the S & P 500:

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 recent movements in LIBOR and its implications for risk appetite:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning September 12

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2128, -2.39%	Bearish	Bearish
Nifty	8867, 0.67%	Neutral**	Bullish
China Shanghai Index	3079, 0.38%	Neutral	Neutral
Gold	1335, 0.59%	Bullish	Bullish
WTIC Crude	45.88, 3.24%	Bullish	Bullish
Copper	2.09, 0.70%	Bullish	Bullish
Baltic Dry Index	804, 11.67%	Bullish	Bullish
Euro	1.123, 0.39%	Neutral	Neutral
Dollar/Yen	102.69, -1.29%	Bearish	Bearish
Dow Transports	7823, -1.56%	Bearish	Bearish
High Yield (ETF)	36.15, -1.34%	Bearish	Bearish
US 10 year Bond Yield	1.67%, 4.76%	Bearish	Bearish
Nyse Summation Index	758, -3.85%	Bearish	Neutral
US Vix	17.50, 46.08%	Bearish	Bearish
20 DMA, S and P 500	2178, Below	Bearish	Neutral
50 DMA, S and P 500	2164, Below	Bearish	Neutral
200 DMA, S and P 500	2057, Above	Bullish	Neutral
20 DMA, Nifty	8717, Above	Neutral	Bullish
50 DMA, Nifty	8593, Above	Neutral	Bullish
200 DMA, Nifty	7933, Above	Neutral	Bullish
India Vix	13.23, 2.24%	Neutral	Bearish
Dollar/Rupee	66.93, 0.55%	Neutral	Bearish
Overall	S & P 500	Nifty
Bullish Indications	5	8
Bearish Indications	9	8
Outlook	Bearish	Neutral
Observation	The S and P 500 fell hard and the Nifty rallied 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	Japan – GDP, Australia – Employment data New Zealand – Employment data, Euro Zone – ZEW sentiment survey, U.K – CPI, US – CPI, Canada – CPI, 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 fell and the Nifty rallied last week. Signals are bearish for the upcoming week. Market momentum, breadth and sentiment indicators have been showing divergences for months now and a big breakdown is underway.  The markets are likely to continue major breakdowns in 2016. The critical levels to watch are 2140 (up) and 2120 (down) on the S & P and 8900 (up) and 8800 (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.