Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning October 14

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2970, 0.62%	Bullish	Bullish
Nifty	11305, 1.17%	Neutral **	Bullish
China Shanghai Index	2974, 2.36%	Bullish	Bullish
Gold	1493, -1.29%	Bearish	Bearish
WTIC Crude	54.88, 3.92%	Bullish	Bullish
Copper	2.62, 2.38%	Bullish	Bullish
Baltic Dry Index	1924, 8.89%	Bullish	Bullish
Euro	1.1037, 0.54%	Bullish	Bullish
Dollar/Yen	108.42, 1.38%	Bullish	Bullish
Dow Transports	10292, 2.61%	Bullish	Bullish
High Yield (Bond)	108.08, 0.36%	Neutral	Neutral
US 10 year Bond Yield	1.73%, 14.43%	Bearish	Bearish
Nyse Summation Index	435, -21.76%	Bearish	Neutral
US Vix	15.58, -8.57%	Bullish	Bullish
Skew	122	Neutral	Neutral
20 DMA, S and P 500	2961, Above	Bullish	Neutral
50 DMA, S and P 500	2936, Above	Bullish	Neutral
200 DMA, S and P 500	2854, Above	Bullish	Neutral
20 DMA, Nifty	11236, Above	Neutral	Bullish
50 DMA, Nifty	11088, Above	Neutral	Bullish
200 DMA, Nifty	11271, Above	Neutral	Bullish
India Vix	17.14, -2.50%	Neutral	Bullish
Dollar/Rupee	70.92, 0.14%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	12	14
Bearish Indications	3	2
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	Eurozone – CPI, UK – Employment data, CPI, China - 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 and the Nifty rallied 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 massive 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 2980 (up) and 2960 (down) on the S & P 500 and 11400 (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.

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning October 07

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2952, -0.33%	Neutral	Neutral
Nifty	11175, -2.93%	Neutral **	Bearish
China Shanghai Index	2905, -0.92%	Bearish	Bearish
Gold	1510, 0.26%	Neutral	Neutral
WTIC Crude	52.98, -5.24%	Bearish	Bearish
Copper	2.56, -1.31%	Bearish	Bearish
Baltic Dry Index	1809, -7.85%	Bearish	Bearish
Euro	1.0978, 0.36%	Neutral	Neutral
Dollar/Yen	106.95, -0.93%	Bearish	Bearish
Dow Transports	10030, -3.01%	Bearish	Bearish
High Yield (Bond)	107.69, -0.91%	Bearish	Bearish
US 10 year Bond Yield	1.53%, -9.18%	Bullish	Bullish
Nyse Summation Index	556, -24.32%	Bearish	Neutral
US Vix	17.04, -1.05%	Bullish	Bullish
Skew	115	Neutral	Neutral
20 DMA, S and P 500	2977, Below	Bearish	Neutral
50 DMA, S and P 500	2942, Above	Bullish	Neutral
200 DMA, S and P 500	2841, Above	Bullish	Neutral
20 DMA, Nifty	11178, Below	Neutral	Bearish
50 DMA, Nifty	11092, Above	Neutral	Bullish
200 DMA, Nifty	11262, Below	Neutral	Bearish
India Vix	17.58, 9.09%	Neutral	Bearish
Dollar/Rupee	70.83, 0.45%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	4	3
Bearish Indications	9	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 – PPI, CPI, UK – 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 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 massive 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 2965 (up) and 2940 (down) on the S & P 500 and 11250 (up) and 11100 (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.