Daily Market Insight

Here is your daily insight from global financial markets. Today's post is an aggregate of interesting news and views form the Stock, FOREX, Commodity markets and the Economy:

Daily Market Insight

Here is your daily insight from global financial markets. Today's post is an aggregate of interesting news and views form the Stock, FOREX, Commodity markets and the Economy:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning May 29

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2416, 1.83%	Bullish	Bullish
Nifty	9595, 1.77%	Neutral **	Bullish
China Shanghai Index	3110, 0.63%	Bullish	Bullish
Gold	1268, 1.16%	Bullish	Bullish
WTIC Crude	49.80, -1.72%	Bearish	Bearish
Copper	2.55, -0.60%	Bearish	Bearish
Baltic Dry Index	912, -4.60%	Bearish	Bearish
Euro	1.118, -0.21%	Neutral	Neutral
Dollar/Yen	111.33, 0.06%	Neutral	Neutral
Dow Transports	9176, 3.35%	Bullish	Bullish
High Yield (ETF)	37.33, 0.40%	Neutral	Neutral
US 10 year Bond Yield	2.25%, 0.22%	Neutral	Neutral
Nyse Summation Index	543, 16.27%	Bullish	Neutral
US Vix	9.81, -18.52%	Bullish	Bullish
Skew	125	Neutral	Neutral
20 DMA, S and P 500	2394, Above	Bullish	Neutral
50 DMA, S and P 500	2373, Above	Bullish	Neutral
200 DMA, S and P 500	2263, Above	Bullish	Neutral
20 DMA, Nifty	9403, Above	Neutral	Bullish
50 DMA, Nifty	9263, Above	Neutral	Bullish
200 DMA, Nifty	8717, Above	Neutral	Bullish
India Vix	10.86, -3.89%	Neutral	Bullish
Dollar/Rupee	64.56, 0.08%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	9	10
Bearish Indications	3	3
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty made new highs last week. Indicators are bullish. The market is at new highs. Time to watch those stops.
On the Horizon	China – PMI, Japan – Capital spending, New Zealand – Wheeler speech, Euro Zone – German CPI, Employment data, Euro zone CPI, ECB rate decision, Draghi speech, U.S – ISM, Personal consumption expenditure, Consumer confidence, Employment data, Canada – GDP, PMI, Mexico – Inflation report
*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 made new highs last week. Signals are bullish for the upcoming week. Past and future FED rate hikes are yet to be priced in and sentiment indicators are back in complacency mode. Market internals, the transports and commodities are flashing major warning signs of a large decline ahead. The critical levels to watch are 2425 (up) and 2400 (down) on the S & P and 9650 (up) and 9550 (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.