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 possible range break outs in the Yen, Pound and the S & P 500:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning September 26

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2165, 1.19%	Bullish	Bullish
Nifty	8832, 0.59%	Neutral**	Bullish
China Shanghai Index	3034, 1.03%	Bullish	Bullish
Gold	1342, 2.40%	Bullish	Bullish
WTIC Crude	44.48, 1.97%	Bullish	Bullish
Copper	2.20, 1.90%	Bullish	Bullish
Baltic Dry Index	941, 17.62%	Bullish	Bullish
Euro	1.123, 0.62%	Bullish	Bullish
Dollar/Yen	101.00, -1.21%	Bearish	Bearish
Dow Transports	7937, 2.14%	Bullish	Bullish
High Yield (ETF)	36.51, 1.02%	Bullish	Bullish
US 10 year Bond Yield	1.62%, -5.06%	Bullish	Bullish
Nyse Summation Index	572, 4.15%	Bullish	Neutral
US Vix	12.29, -20.04%	Bullish	Bullish
20 DMA, S and P 500	2161, Above	Bullish	Neutral
50 DMA, S and P 500	2169, Below	Bearish	Neutral
200 DMA, S and P 500	2061, Above	Bullish	Neutral
20 DMA, Nifty	8780, Above	Neutral	Bullish
50 DMA, Nifty	8676, Above	Neutral	Bullish
200 DMA, Nifty	7974, Above	Neutral	Bullish
India Vix	13.25, -9.14%	Neutral	Bullish
Dollar/Rupee	66.70, -0.56%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	13	17
Bearish Indications	2	1
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty rallied last week. Indicators are bullish. Markets are challenging resistance again. Time to tighten those stops.
On the Horizon	China – PMI, Japan – CPI, Canada - GDP, Euro zone – German employment data, CPI, Euro Zone CPI, U.S. - Consumer confidence, Durable goods
*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 on the FED. Signals are bullish for the upcoming week. Market momentum and breadth have been showing divergences for months now and sentiment indicators are still highly complacent and a big breakdown will likely start soon.  The markets are likely to continue major breakdowns in 2016. The critical levels to watch are 2175 (up) and 2150 (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.  Love your thoughts and feedback.

Indicator Watch - How to Use the MACD in Trading?

Technical indicators are widely used in trading to determine market direction over different time frames. One of the widely followed technical indicators is the moving average cross over divergence (MACD). Here is a useful video from the currency strategists at FXStreet that shows you how to use the MACD in identifying entry and exit levels in trading: