Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning December 19

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2258, -0.06%	Neutral	Neutral
Nifty	8140, -1.48%	Neutral**	Bearish
China Shanghai Index	3123, -3.40%	Bearish	Bearish
Gold	1137, -2.11%	Bearish	Bearish
WTIC Crude	52.95, 2.82%	Bullish	Bullish
Copper	2.56, -3.14%	Bearish	Bearish
Baltic Dry Index	946, -13.21%	Bearish	Bearish
Euro	1.045, -1.02%	Bearish	Bearish
Dollar/Yen	117.97, 2.34%	Bullish	Bullish
Dow Transports	9168, -2.55%	Bearish	Bearish
High Yield (ETF)	36.29, -0.47%	Neutral	Neutral
US 10 year Bond Yield	2.60%, 5.40%	Bearish	Bearish
Nyse Summation Index	403, 16.66%	Bullish	Neutral
US Vix	12.20, 3.83%	Bearish	Bearish
20 DMA, S and P 500	2223, Above	Bullish	Neutral
50 DMA, S and P 500	2174, Above	Bullish	Neutral
200 DMA, S and P 500	2125, Above	Bullish	Neutral
20 DMA, Nifty	8128, Above	Neutral	Bullish
50 DMA, Nifty	8372, Below	Neutral	Bearish
200 DMA, Nifty	8214, Below	Neutral	Bearish
India Vix	15.25, 1.23%	Neutral	Bearish
Dollar/Rupee	67.85, 0.56%	Neutral	Bearish
Overall	S & P 500	Nifty
Bullish Indications	6	3
Bearish Indications	8	13
Outlook	Bearish	Bearish
Observation	The S and P 500 was unchanged and the Nifty fell last week. Indicators are bearish. The Trump bounce is largely over. Time to watch those stops.
On the Horizon	New Zealand - GDP, Japan – Rate decision, U.S – GDP, durable goods, Canada – CPI, 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 was unchanged and the Nifty fell last week. Signals are bearish for the upcoming week. The FED rate hike is yet to be priced in and sentiment indicators are back in complacent mode. Transports are beginning to under perform. Bond yields have made a dramatic surge up and risky segments of the market like emerging markets are breaking down on broad dollar strength. The critical levels to watch are 2270 (up) and 2250 (down) on the S & P and 8200 (up) and 8050 (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.

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