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

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2264, 0.25%	Neutral	Neutral
Nifty	7986, -1.89%	Neutral**	Bearish
China Shanghai Index	3110, -0.41%	Neutral	Neutral
Gold	1134, -0.33%	Neutral	Neutral
WTIC Crude	53.02, 0.13%	Neutral	Neutral
Copper	2.48, -3.33%	Bearish	Bearish
Baltic Dry Index	961, 1.59%	Bullish	Bullish
Euro	1.045, 0.01%	Neutral	Neutral
Dollar/Yen	117.33, -0.53%	Bearish	Bearish
Dow Transports	9191, 0.25%	Neutral	Neutral
High Yield (ETF)	36.66, 1.02%	Bullish	Bullish
US 10 year Bond Yield	2.54%, -2.08%	Bullish	Bullish
Nyse Summation Index	467, 15.98%	Bullish	Neutral
US Vix	11.44, -6.23%	Bullish	Bullish
20 DMA, S and P 500	2239, Above	Bullish	Neutral
50 DMA, S and P 500	2186, Above	Bullish	Neutral
200 DMA, S and P 500	2132, Above	Bullish	Neutral
20 DMA, Nifty	8137, Below	Neutral	Bearish
50 DMA, Nifty	8304, Below	Neutral	Bearish
200 DMA, Nifty	8240, Below	Neutral	Bearish
India Vix	15.13, -0.82%	Neutral	Bullish
Dollar/Rupee	67.84, -0.02%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	9	5
Bearish Indications	2	6
Outlook	Bearish	Bearish
Observation	The S and P 500 was unchanged and the Nifty fell last week. Indicators are mixed. The Trump bounce is largely over. Time to watch those stops.
On the Horizon	Japan – CPI, U.S – Consumer confidence, Trade balance
*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 mixed for the upcoming week. The FED rate hike is yet to be priced in and sentiment indicators are back in complacent mode. 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 8100 (up) and 7900 (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.

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 trends in play that may continue till year end:

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 impact of recent monetary policy action on the Euro and the Yen: