Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning August 19

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2889, -1.03%	Bearish	Bearish
Nifty	11048, -0.56%	Neutral **	Bearish
China Shanghai Index	2824, 1.77%	Bullish	Bullish
Gold	1524, 1.01%	Bullish	Bullish
WTIC Crude	54.81, 0.57%	Bullish	Bullish
Copper	2.59, -0.12%	Neutral	Neutral
Baltic Dry Index	2088, 19.45%	Bullish	Bullish
Euro	1.1091, -0.97%	Bearish	Bearish
Dollar/Yen	106.38, 0.67%	Bullish	Bullish
Dow Transports	9967, -2.35%	Bearish	Bearish
High Yield (Bond)	107.47, -0.13%	Neutral	Neutral
US 10 year Bond Yield	1.56%, -10.47%	Bullish	Bullish
Nyse Summation Index	263, -39.55%	Bearish	Neutral
US Vix	18.47, 2.78%	Bearish	Bearish
Skew	116	Neutral	Neutral
20 DMA, S and P 500	2940, Below	Bearish	Neutral
50 DMA, S and P 500	2945, Below	Bearish	Neutral
200 DMA, S and P 500	2798, Above	Bullish	Neutral
20 DMA, Nifty	11134, Below	Neutral	Bearish
50 DMA, Nifty	11513, Below	Neutral	Bearish
200 DMA, Nifty	11178, Below	Neutral	Bearish
India Vix	16.65, 5.06%	Neutral	Bearish
Dollar/Rupee	71.16, 0.33%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	7	6
Bearish Indications	7	9
Outlook	Neutral	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 – FED talk, Eurozone – CPI
*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 have likely made another major top in global equity markets and are failing at resistance. The market has established 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 2900 (up) and 2875 (down) on the S & P 500 and 11150 (up) and 10950 (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 August 12

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2919, -0.46%	Neutral	Neutral
Nifty	11110, 1.02%	Neutral **	Bullish
China Shanghai Index	2919, -3.25%	Bearish	Bearish
Gold	1508, 3.49%	Bullish	Bullish
WTIC Crude	54.22, -2.59%	Bearish	Bearish
Copper	2.59, 0.97%	Bullish	Bullish
Baltic Dry Index	1748, -2.24%	Bearish	Bearish
Euro	1.1200, 0.82%	Bullish	Bullish
Dollar/Yen	105.70, -0.83%	Bearish	Bearish
Dow Transports	10207, -1.61%	Bearish	Bearish
High Yield (Bond)	107.93, -0.28%	Neutral	Neutral
US 10 year Bond Yield	1.75%, -5.69%	Bullish	Bullish
Nyse Summation Index	435, -33.92%	Bearish	Neutral
US Vix	17.97, 2.04%	Bearish	Bearish
Skew	116	Neutral	Neutral
20 DMA, S and P 500	2969, Below	Bearish	Neutral
50 DMA, S and P 500	2937, Below	Bearish	Neutral
200 DMA, S and P 500	2793, Above	Bullish	Neutral
20 DMA, Nifty	11231, Below	Neutral	Bearish
50 DMA, Nifty	11574, Below	Neutral	Bearish
200 DMA, Nifty	11167, Below	Neutral	Bearish
India Vix	15.85, 4.33%	Neutral	Bearish
Dollar/Rupee	70.93, 0.73%	Neutral	Bearish
Overall	S & P 500	Nifty
Bullish Indications	5	5
Bearish Indications	9	11
Outlook	Bearish	Bearish
Observation	The S and P 500 fell and the Nifty rebounded last week. Indicators are bearish for the week. The markets are on the verge of a great depression style collapse. Watch those stops.
On the Horizon	US – CPI, UK – Employment data, CPI, Eurozone – German 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 fell and the Nifty rebounded last week. Indicators are bearish for the upcoming week. QE forever from the FED is about to trigger the deflationary collapse of the century and we have likely made another major top in global equity markets and are failing at resistance. The market has established 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 2930 (up) and 2910 (down) on the S & P 500 and 11200 (up) and 11000 (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.