Stock Market Signals for the US and Indian Stock Markets for the Week beginning July 27

Indicator	Weekly Level / Change / Significance	Implication for S & P 500	Implication for Nifty*
S & P 500	2080, -2.21%	Bearish	Bearish
Nifty	8522, -1.03%	Neutral**	Bearish
China Shanghai Index	4071, 2.87%	Bullish	Bullish
Gold	1098, -2.99%	Bearish	Bearish
WTIC Crude	47.96, -5.55%	Bearish	Bearish
Copper	2.39, -4.25%	Bearish	Bearish
Baltic Dry Index	1086, 3.63%	Bullish	Bullish
Euro	1.0974, 1.18%	Bullish	Bullish
Dollar/Yen	123.76, -0.24%	Neutral	Neutral
Dow Transports	8073, -2.67%	Bearish	Bearish
US 10 year Bond Yield	2.27%, -3.32%	Bullish	Bullish
Nyse Summation Index	-282, -33.57%	Bearish	Neutral
US Vix	13.74, 14.98%	Bearish	Bearish
20 DMA, S and P 500	2091, Below	Bearish	Neutral
50 DMA, S and P 500	2102, Below	Bearish	Neutral
200 DMA, S and P 500	2064, Above	Bullish	Neutral
20 DMA, Nifty	8485, Above	Neutral	Bullish
50 DMA, Nifty	8343, Above	Neutral	Bullish
200 DMA, Nifty	8406, Above	Neutral	Bullish
India Vix	15.46, 4.42%	Neutral	Bearish
Dollar/Rupee	64.10, 0.97%	Neutral	Bearish
Overall	S & P 500	Nifty
Bullish Indications	5	7
Bearish Indications	12	9
Outlook	Bearish	Bearish
Observation	The Sand P 500 gave up the prior week’s gains and was down over 2% last week while the Nifty was down 1%. Indicators are bearish. The summation index, vix and transports are flashing warning signs.  Market cycles are not favorable into mid August, so I am looking for more downside.
On the Horizon	US durable goods and consumer confidence, US FOMC decision, UK GDP, German unemployment data and CPI,  US GDP, Japan CPI, Euro zone CPI, Canada GDP, China PMI
*Nifty	India’s Benchmark Stock Index
Raw Data	Courtesy Google finance, Stock charts, Dailyfx
**Neutral	Changes less than 0.5% are considered neutral

Signals are bearish for the upcoming week. Bearish divergences and unfavorable market cycles into August could result in a sharp and sustainable correction near term. You can check out last weeks report for a comparison.You can also check out snapshots of the S and P 500 and Nifty Indices.

Indian Stock Market Nifty Index, Technical and Fundamental Snapshot

As we are well into 2016 I thought it would make sense to look at the technical and fundamental snapshot of the Indian stock market #Nifty index. First the technicals. For this I turn to Brahmesh at Brahmesh Technicals. The Nifty has had a bullish break out over the 8000 mark. It is now turning down from old highs near 9000:




Next the fundamentals, for this I turn to Sanjay Jaiswal at Market Pulse for the daily updated trailing #P/E ratio on the Nifty. As you can see below despite the recent fall it stood above 20.0. The market is obviously overvalued  at an earnings yield of less than 5.5%:

Support: 8000
Resistance: 8400

Taken together the market appears over extended and ready for a fall both on technical and fundamental grounds.

Nifty Fundamental and Technical Snapshot http://t.co/pvruEj2HB3 pic.twitter.com/efIXg4BfRD

— samuelR (@RajveerRawlin) September 6, 2015

Stock Market Signals for the US and Indian Stock Markets for the Week beginning July 20

Indicator	Weekly Level / Change / Significance	Implication for S & P 500	Implication for Nifty*
S & P 500	2127, 2.41%	Bullish	Bullish
Nifty	8610, 2.98%	Neutral**	Bullish
China Shanghai Index	3957, 2.09%	Bullish	Bullish
Gold	1132, -2.64%	Bearish	Bearish
WTIC Crude	50.78, -3.86%	Bearish	Bearish
Copper	2.50, -1.81%	Bearish	Bearish
Baltic Dry Index	1048, 19.91%	Bullish	Bullish
Euro	1.0846, -2.81%	Bearish	Bearish
Dollar/Yen	124.05, 1.05%	Bullish	Bullish
Dow Transports	8294, 1.12%	Bullish	Bullish
US 10 year Bond Yield	2.35%, -2.81%	Bullish	Bullish
Nyse Summation Index	-211, 47.60%	Bullish	Neutral
US Vix	11.95, -29%	Bullish	Bullish
20 DMA, S and P 500	2092, Above	Bullish	Neutral
50 DMA, S and P 500	2102, Above	Bullish	Neutral
200 DMA, S and P 500	2060, Above	Bullish	Neutral
20 DMA, Nifty	8434, Above	Neutral	Bullish
50 DMA, Nifty	8309, Above	Neutral	Bullish
200 DMA, Nifty	8393, Above	Neutral	Bullish
India Vix	14.80, -13.81%	Neutral	Bullish
Dollar/Rupee	63.49, 0.20%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	11	12
Bearish Indications	4	4
Outlook	Bullish	Bullish
Observation	The Sand P 500 was up last week while the Nifty out performed. Indicators are bullish.  Market cycles are not favorable into mid August, so I am looking for a top in this move up.
On the Horizon	RBA and BOE minutes, Australia CPI, US home sales, New Zealand rate decision, UK and Canada retail sales, Australia trade balance
*Nifty	India’s Benchmark Stock Index
Raw Data	Courtesy Google finance, Stock charts, Dailyfx
**Neutral	Changes less than 0.5% are considered neutral

Signals are bullish for the upcoming week. Bearish divergences and unfavorable market cycles into August however make me look for a near term top. You can check out last weeks report for a comparison.