Indicator
|
Weekly Level / Change
|
Implication for
S & P 500
|
Implication for Nifty*
|
S & P 500
|
2840, 0.76%
|
Bullish
|
Bullish
|
Nifty
|
11361, 0.73%
|
Neutral **
|
Bullish
|
China Shanghai Index
|
2740, -4.63%
|
Bearish
|
Bearish
|
Gold
|
1223, 0.02%
|
Neutral
|
Neutral
|
WTIC Crude
|
68.49, -0.29%
|
Neutral
|
Neutral
|
Copper
|
2.76, -1.37%
|
Bearish
|
Bearish
|
Baltic Dry Index
|
1773, 5.79%
|
Bullish
|
Bullish
|
Euro
|
1.1575, -0.74%
|
Bearish
|
Bearish
|
Dollar/Yen
|
111.25, 0.24%
|
Neutral
|
Neutral
|
Dow Transports
|
11097, 1.28%
|
Bullish
|
Bullish
|
High Yield (ETF)
|
35.87, 0.09%
|
Neutral
|
Neutral
|
US 10 year Bond Yield
|
2.95%, -0.24%
|
Neutral
|
Neutral
|
Nyse Summation Index
|
462, -20.53%
|
Bearish
|
Neutral
|
US Vix
|
11.64, -10.67%
|
Bullish
|
Bullish
|
Skew
|
146
|
Bearish
|
Bearish
|
20 DMA, S and P 500
|
2811, Above
|
Bullish
|
Neutral
|
50 DMA, S and P 500
|
2771, Above
|
Bullish
|
Neutral
|
200 DMA, S and P 500
|
2702, Above
|
Bullish
|
Neutral
|
20 DMA, Nifty
|
11105, Above
|
Neutral
|
Bullish
|
50 DMA, Nifty
|
10881, Above
|
Neutral
|
Bullish
|
200 DMA, Nifty
|
10567, Above
|
Neutral
|
Neutral
|
India Vix
|
12.08, -1.89%
|
Neutral
|
Bullish
|
Dollar/Rupee
|
68.49, -0.16%
|
Neutral
|
Neutral
|
Overall
|
S & P 500
|
Nifty
|
|
Bullish Indications
|
7
|
8
|
|
Bearish Indications
|
5
|
4
|
|
Outlook
|
Bullish
|
Bullish
|
|
Observation
|
The S and P 500 and the Nifty were up
last week. Indicators are bullish.
The markets are close to making
secondary tops. Watch those stops.
|
||
On the Horizon
|
Japan – GDP, Australia – RBA rate decision, New Zealand – RBNZ
rate decision, U.K – GDP, U.S – PPI, CPI, Canada – Employment data
|
||
*Nifty
|
India’s Benchmark Stock Market Index
|
||
Raw Data
|
Courtesy Google finance, Stock
charts, investing.com
|
||
**Neutral
|
Changes less than 0.5% are considered
neutral
|
The S and
P 500 and the Nifty were up last week. Indicators are bullish for the upcoming
week. This rally is close to a major
secondary top in key asset classes. Quantitative tightening by the FED is
yet to be priced in fully. The markets are still trading well over 3 standard
deviations above their long term averages from which corrections usually
result. Tail risk is also very high. The critical levels to watch for the week are 2850 (up) and 2830
(down) on the S & P 500 and 11450 (up) and 11250 (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.