Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning September 02

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2927, 2.79%	Bullish	Bullish
Nifty	11023, 1.79%	Neutral **	Bullish
China Shanghai Index	2886, 2.61%	Bullish	Bullish
Gold	1529, -0.55%	Bearish	Bearish
WTIC Crude	55.16, 1.83%	Bullish	Bullish
Copper	2.56, 0.71%	Bullish	Bullish
Baltic Dry Index	2378, 9.69%	Bullish	Bullish
Euro	1.0991, -1.37%	Bearish	Bearish
Dollar/Yen	106.29, 0.83%	Bullish	Bullish
Dow Transports	10127, 3.98%	Bullish	Bullish
High Yield (Bond)	108.82, 0.74%	Bullish	Bullish
US 10 year Bond Yield	1.50%, -1.44%	Bullish	Bullish
Nyse Summation Index	312, 8.77%	Bullish	Neutral
US Vix	18.98, -4.48%	Bullish	Bullish
Skew	115	Neutral	Neutral
20 DMA, S and P 500	2893, Above	Bullish	Neutral
50 DMA, S and P 500	2945, Below	Bearish	Neutral
200 DMA, S and P 500	2806, Above	Bullish	Neutral
20 DMA, Nifty	10977, Above	Neutral	Bullish
50 DMA, Nifty	11342, Below	Neutral	Bearish
200 DMA, Nifty	11210, Below	Neutral	Bearish
India Vix	16.28, -6.14%	Neutral	Bullish
Dollar/Rupee	71.45, -0.08%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	13	12
Bearish Indications	3	4
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty rallied 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 – Employment data
*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 bounced 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 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 and a 200 point drop in the S and P 500 looks imminent. 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 2940 (up) and 2915 (down) on the S & P 500 and 11100 (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 26

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2847, -1.44%	Bearish	Bearish
Nifty	10829, -1.98%	Neutral **	Bearish
China Shanghai Index	2897, 2.61%	Bullish	Bullish
Gold	1537, 0.86%	Bullish	Bullish
WTIC Crude	53.95, -1.68%	Bearish	Bearish
Copper	2.54, -2.35%	Bearish	Bearish
Baltic Dry Index	2168, 3.83%	Bullish	Bullish
Euro	1.1142, 0.47%	Neutral	Neutral
Dollar/Yen	105.41, -0.91%	Bearish	Bearish
Dow Transports	9740, -2.28%	Bearish	Bearish
High Yield (Bond)	108.04, 0.52%	Bullish	Bullish
US 10 year Bond Yield	1.53%, -2.61%	Bullish	Bullish
Nyse Summation Index	287, 9.18%	Bullish	Neutral
US Vix	19.87, 7.58%	Bearish	Bearish
Skew	113	Neutral	Neutral
20 DMA, S and P 500	2914, Below	Bearish	Neutral
50 DMA, S and P 500	2947, Below	Bearish	Neutral
200 DMA, S and P 500	2803, Above	Bullish	Neutral
20 DMA, Nifty	11014, Below	Neutral	Bearish
50 DMA, Nifty	11414, Below	Neutral	Bearish
200 DMA, Nifty	11197, Below	Neutral	Bearish
India Vix	17.35, 4.20%	Neutral	Bearish
Dollar/Rupee	71.51, 0.50%	Neutral	Bearish
Overall	S & P 500	Nifty
Bullish Indications	7	5
Bearish Indications	8	11
Outlook	Bearish	Bearish
Observation	The S and P 500 and the Nifty fell 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 – GDP, Eurozone – CPI, German GDP, German employment data
*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 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 and a 200 point drop in the S and P 500 looks imminent. 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 2860 (up) and 2835 (down) on the S & P 500 and 10900 (up) and 10750 (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.