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

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	3026, 1.65%	Bullish	Bullish
Nifty	11284, -1.18%	Neutral **	Bearish
China Shanghai Index	2945, 0.70%	Bullish	Bullish
Gold	1419, -0.51%	Bearish	Bearish
WTIC Crude	56.19, 1.01%	Bullish	Bullish
Copper	2.69, -2.04%	Bearish	Bearish
Baltic Dry Index	1937, -10.74%	Bearish	Bearish
Euro	1.1127, -0.85%	Bearish	Bearish
Dollar/Yen	108.68, 0.78%	Bullish	Bullish
Dow Transports	10777, 1.63%	Bullish	Bullish
High Yield (Bond)	108.90, 0.73%	Bullish	Bullish
US 10 year Bond Yield	2.07%, 0.74%	Bearish	Bearish
Nyse Summation Index	740, -3.20%	Bearish	Neutral
US Vix	12.16, -15.85%	Bullish	Bullish
Skew	123	Neutral	Neutral
20 DMA, S and P 500	2992, Above	Bullish	Neutral
50 DMA, S and P 500	2916, Above	Bullish	Neutral
200 DMA, S and P 500	2785, Above	Bullish	Neutral
20 DMA, Nifty	11582, Below	Neutral	Bearish
50 DMA, Nifty	11727, Below	Neutral	Bearish
200 DMA, Nifty	11136, Above	Neutral	Bullish
India Vix	12.13, -3.98%	Neutral	Bullish
Dollar/Rupee	68.88, 0.03%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	9	9
Bearish Indications	6	8
Outlook	Bullish	Bullish
Observation	The S and P 500 rallied and the Nifty fell 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 – FOMC rate decision, Employment data, Eurozone – CPI, German employment data, UK – BOE rate decision, Japan – BOJ 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 made new highs and the Nifty fell 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 within a percent of another major top in global equity markets. The market is establishing a major top with non-conformations from the transports, other global indices and commodities. The trend is about to change from bullish to bearish and the markets are about to get smashed by a strong dollar. 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 3040 (up) and 3015 (down) on the S & P 500 and 11350 (up) and 11200 (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.

Nasdaq - Nasdaq 100 Ratio at 2000 Levels - Massive Crash Just around the Corner?

After 19 long years the Nasdaq - Nasdaq 100 Ratio has reached the record lows it saw in 2000, when a hand full of tech stocks outperformed the broader market.  This occurred at the market peak just before the dotcom bubble burst taking the Nasdaq down almost 80% and the rest of the market over 40%. This time will be no different with a massive market crash just around the corner, with all signs such as global inverted yield curves and trade wars pointing to a severe recession ahead:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning July 22

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2977, -1.23%	Bearish	Bearish
Nifty	11419, -1.15%	Neutral **	Bearish
China Shanghai Index	2924, -0.22%	Neutral	Neutral
Gold	1426, 0.58%	Bullish	Bullish
WTIC Crude	55.75, -7.41%	Bearish	Bearish
Copper	2.74, 1.74%	Bullish	Bullish
Baltic Dry Index	2170, 16.35%	Bullish	Bullish
Euro	1.1222, -0.43%	Neutral	Neutral
Dollar/Yen	107.71, -0.13%	Neutral	Neutral
Dow Transports	10604, -0.31%	Neutral	Neutral
High Yield (Bond)	108.12, -0.33%	Neutral	Neutral
US 10 year Bond Yield	2.06%, -3.14%	Bullish	Bullish
Nyse Summation Index	764, -2.25%	Bearish	Neutral
US Vix	14.45, 16.63%	Bearish	Bearish
Skew	126	Neutral	Neutral
20 DMA, S and P 500	2973, Above	Bullish	Neutral
50 DMA, S and P 500	2900, Above	Bullish	Neutral
200 DMA, S and P 500	2783, Above	Bullish	Neutral
20 DMA, Nifty	11706, Below	Neutral	Bearish
50 DMA, Nifty	11719, Below	Neutral	Bearish
200 DMA, Nifty	11125, Above	Neutral	Bullish
India Vix	12.52, 4.31%	Neutral	Bearish
Dollar/Rupee	68.86, 0.44%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	7	5
Bearish Indications	4	7
Outlook	Bullish	Bearish
Observation	The S and P 500 and the Nifty fell 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 – GDP, Eurozone – ECB 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 and the Nifty fell 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 is establishing a major top with non-conformations from the transports, other global indices and commodities. The trend is about to change from bullish to bearish and the markets are about to get smashed by a strong dollar. 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 2990 (up) and 2965 (down) on the S & P 500 and 11500 (up) and 11350 (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.