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 Pound:

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 some key trade setups for 2017:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning January 2

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2239, -1.10%	Bearish	Bearish
Nifty	8186, 2.51%	Neutral**	Bullish
China Shanghai Index	3104, -0.21%	Neutral	Neutral
Gold	1152, 1.60%	Bullish	Bullish
WTIC Crude	53.72, 1.32%	Bullish	Bullish
Copper	2.51, 1.07%	Bullish	Bullish
Baltic Dry Index	961, 0.0%	Neutral	Neutral
Euro	1.053, 0.69%	Bullish	Bullish
Dollar/Yen	116.97, -0.29%	Neutral	Neutral
Dow Transports	9044, -1.60%	Bearish	Bearish
High Yield (ETF)	36.45, -0.08%	Neutral	Neutral
US 10 year Bond Yield	2.45%, -3.81%	Bullish	Bullish
Nyse Summation Index	463, -0.93%	Bearish	Neutral
US Vix	14.04, 22.73%	Bearish	Bearish
20 DMA, S and P 500	2250, Below	Bearish	Neutral
50 DMA, S and P 500	2195, Above	Bullish	Neutral
200 DMA, S and P 500	2136, Above	Bullish	Neutral
20 DMA, Nifty	8111, Above	Neutral	Bullish
50 DMA, Nifty	8249, Below	Neutral	Bearish
200 DMA, Nifty	8256, Below	Neutral	Bearish
India Vix	15.47, 2.23%	Neutral	Bearish
Dollar/Rupee	67.96, 0.18%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	7	6
Bearish Indications	5	5
Outlook	Bullish	Bullish
Observation	The S and P 500 fell and the Nifty rallied last week. Indicators are bullish. The Trump bounce is largely over. Time to watch those stops.
On the Horizon	Canada – Employment data, Euro zone – German Employment data, CPI, Euro zone CPI, U.S – Employment data, ISM data.
*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 bounced back last week. Signals are bullish 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 2250 (up) and 2230 (down) on the S & P and 8250 (up) and 8100 (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. Happy new year everyone.