Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning June 10

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2873, 4.41%	Bullish	Bullish
Nifty	11871, -0.44%	Neutral **	Neutral
China Shanghai Index	2828, -2.45%	Bearish	Bearish
Gold	1345, 2.99%	Bullish	Bullish
WTIC Crude	54.05, 1.03%	Bullish	Bullish
Copper	2.62, -0.00%	Neutral	Neutral
Baltic Dry Index	1138, 3.83%	Bullish	Bullish
Euro	1.1333, 1.47%	Bullish	Bullish
Dollar/Yen	108.20, -0.03%	Neutral	Neutral
Dow Transports	10141, 4.13%	Bullish	Bullish
High Yield (Bond)	107.61, 1.38%	Bullish	Bullish
US 10 year Bond Yield	2.08%, -1.91%	Bullish	Bullish
Nyse Summation Index	235, 13.17%	Bullish	Neutral
US Vix	16.30, -12.88%	Bullish	Bullish
Skew	115	Neutral	Neutral
20 DMA, S and P 500	2827, Above	Bullish	Neutral
50 DMA, S and P 500	2871, Above	Bullish	Neutral
200 DMA, S and P 500	2775, Above	Bullish	Neutral
20 DMA, Nifty	11683, Above	Neutral	Bullish
50 DMA, Nifty	11640, Above	Neutral	Bullish
200 DMA, Nifty	11080, Above	Neutral	Bullish
India Vix	14.86, -7.53%	Neutral	Bullish
Dollar/Rupee	69.39, -0.27%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	13	13
Bearish Indications	1	1
Outlook	Bullish	Bullish
Observation	The S and P 500 was up and the Nifty was unchanged last week. Indicators are bullish for the week. The markets are on the verge of a great depression style collapse. Watch those stops.
On the Horizon	US – PPI, CPI, UK – GDP, Employment data, Japan – GDP
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Stock charts, investing.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 was up and the Nifty was unchanged last week. Indicators are bullish for the upcoming week. QE forever from the FED is about to trigger the deflationary collapse of the century and we are very close to another top in global equity markets. The market has established a major secondary top. The trend is changing from bullish to bearish. Looking for significant under performance in the Nifty going forward on rapidly deteriorating macros. A 5 year deflationary wave is about to start in key asset classes like the Euro, stocks and commodities amidst a number of bearish divergences and Hindenburg omens. We are on the verge of a multi-year great depression. The markets are still trading well over 3 standard deviations above their long term averages from which corrections usually result. Tail risk has been very high off late as the yield curve inverts. The critical levels to watch for the week are 2890 (up) and 2860 (down) on the S & P 500 and 11950 (up) and 11800 (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.

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning June 03

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2752, -2.62%	Bearish	Bearish
Nifty	11923, 0.70%	Neutral **	Bullish
China Shanghai Index	2899, 1.50%	Bullish	Bullish
Gold	1311, 2.71%	Bullish	Bullish
WTIC Crude	53.50, -10.51%	Bearish	Bearish
Copper	2.64, -3.13%	Bearish	Bearish
Baltic Dry Index	1096, 2.81%	Bullish	Bullish
Euro	1.1167, -0.28%	Neutral	Neutral
Dollar/Yen	108.26, -1.11%	Bearish	Bearish
Dow Transports	9738, -3.94%	Bearish	Bearish
High Yield (Bond)	106.15, -0.85%	Bearish	Bearish
US 10 year Bond Yield	2.15%, -9.73%	Bullish	Bullish
Nyse Summation Index	243, -45.42%	Bearish	Neutral
US Vix	18.71, 22.27%	Bearish	Bullish
Skew	113	Neutral	Neutral
20 DMA, S and P 500	2848, Below	Bearish	Neutral
50 DMA, S and P 500	2870, Below	Bearish	Neutral
200 DMA, S and P 500	2776, Below	Bearish	Neutral
20 DMA, Nifty	11600, Above	Neutral	Bullish
50 DMA, Nifty	11613, Above	Neutral	Bullish
200 DMA, Nifty	11073, Above	Neutral	Bullish
India Vix	16.07, -1.42%	Neutral	Bullish
Dollar/Rupee	69.58, -0.30%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	4	10
Bearish Indications	10	6
Outlook	Bearish	Bullish
Observation	The S and P 500 was down and the Nifty was up last week. Indicators are mixed for the week. The markets are on the verge of a great depression style collapse. Watch those stops.
On the Horizon	US – Employment data, Euro Zone – CPI, ECB rate decision, India – RBI rate decision
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Stock charts, investing.com
**Neutral	Changes less than 0.5% are considered neutral

 The S and P 500 fell and the Nifty was up last week. Indicators are mixed for the upcoming week. QE forever from the FED is about to trigger the deflationary collapse of the century and we are very close to another top in global equity markets. The market has rallied 600 points from the December lows but a 5 year bear market is in the making with a secondary top in place. The trend is changing from bullish to bearish. Looking for significant under performance in the Nifty going forward on rapidly deteriorating macros. The India vix has exceeded the US vix suggesting there may be a sudden catch up on the downside for the Indian market in 2019. A 5 year deflationary wave is about to start in key asset classes like the Euro, stocks and commodities amidst a number of bearish divergences and Hindenburg omens. We are on the verge of a multi-year great depression. The markets are still trading well over 3 standard deviations above their long term averages from which corrections usually result. Tail risk has been very high off late as the yield curve inverts. The critical levels to watch for the week are 2760 (up) and 2740 (down) on the S & P 500 and 12000 (up) and 11850 (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.