Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning January 13

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	3265, 0.94%	Bullish	Bullish
Nifty	12257, 0.25%	Neutral **	Neutral
China Shanghai Index	3092, 0.28%	Neutral	Neutral
Gold	1563, 0.70%	Bullish	Bullish
WTIC Crude	59.12, -6.23%	Bearish	Bearish
Copper	2.81, 0.83%	Bullish	Bullish
Baltic Dry Index	774, -14.66%	Bearish	Bearish
Euro	1.1121,- 0.35%	Neutral	Neutral
Dollar/Yen	109.48, 1.28%	Bullish	Bullish
Dow Transports	10974, 0.57%	Bullish	Bullish
High Yield (Bond)	110.13, 0.21%	Neutral	Neutral
US 10 year Bond Yield	1.82%, 2.99%	Bearish	Bearish
Nyse Summation Index	923, 0.64%	Bullish	Neutral
US Vix	12.56, -10.41%	Bullish	Bullish
Skew	128	Neutral	Neutral
20 DMA, S and P 500	3224, Above	Bullish	Neutral
50 DMA, S and P 500	3153, Above	Bullish	Neutral
200 DMA, S and P 500	2983, Above	Bullish	Neutral
20 DMA, Nifty	12178, Above	Neutral	Bullish
50 DMA, Nifty	12049, Above	Neutral	Bullish
200 DMA, Nifty	11606, Above	Neutral	Bullish
S & P 500 P/E	24.47	Bearish	Neutral
Nifty P/E	28.51	Neutral	Bearish
India Vix	14.07, 10.89%	Neutral	Bearish
Dollar/Rupee	70.96, -1.13%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	10	10
Bearish Indications	4	5
Outlook	Bullish	Bullish
Observation	The S and P 500 was up and the Nifty was unchanged 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	Euro Zone – CPI, US – PPI, CPI, UK – GDP, CPI, China – CPI,
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Stock charts, investing.com, multpl.com, nse
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 was up and the Nifty was unchanged last week. Indicators are bullish for the upcoming week. Long term, QE forever from the FED is about to trigger the deflationary collapse of the century and we are likely making another major top in global equity markets. The market is looking like the short of a life time with non-conformations from the transports, other global indices and commodities and insane valuations. A massive drop in the S and P 500 is likely. 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 over stretched valuations. 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 3280 (up) and 3250 (down) on the S & P 500 and 12350 (up) and 12150 (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 January 06

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	3235, -0.16%	Neutral	Neutral
Nifty	12227, -0.16%	Neutral **	Neutral
China Shanghai Index	3084, 2.62%	Bullish	Bullish
Gold	1555, 2.44%	Bullish	Bullish
WTIC Crude	63.03, 2.12%	Bullish	Bullish
Copper	2.78, -1.70%	Bearish	Bearish
Baltic Dry Index	907, -16.79%	Bearish	Bearish
Euro	1.1162,- 0.13%	Neutral	Neutral
Dollar/Yen	108.12, -1.20%	Bearish	Bearish
Dow Transports	10911, -0.23%	Neutral	Neutral
High Yield (Bond)	109.90, 0.32%	Neutral	Neutral
US 10 year Bond Yield	1.79%, -4.30%	Bullish	Bullish
Nyse Summation Index	918, 7.07%	Bullish	Neutral
US Vix	14.02, 4.39%	Bearish	Bearish
Skew	134	Bearish	Bearish
20 DMA, S and P 500	3194, Above	Bullish	Neutral
50 DMA, S and P 500	3130, Above	Bullish	Neutral
200 DMA, S and P 500	2972, Above	Bullish	Neutral
20 DMA, Nifty	12131, Above	Neutral	Bullish
50 DMA, Nifty	12006, Above	Neutral	Bullish
200 DMA, Nifty	11584, Above	Neutral	Bullish
S & P 500 P/E	24.24	Bearish	Neutral
Nifty P/E	28.44	Neutral	Bearish
India Vix	12.70, 20.62%	Neutral	Bearish
Dollar/Rupee	71.77, 0.44%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	8	7
Bearish Indications	6	7
Outlook	Bullish	Neutral
Observation	The S and P 500 and the Nifty were unchanged 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	Euro Zone – CPI, US – Employment data
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Stock charts, investing.com, multpl.com, nse
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 and the Nifty were unchanged 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 likely making another major top in global equity markets. The market is looking like the short of a life time with non-conformations from the transports, other global indices and commodities and insane valuations. 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 over stretched valuations. 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 3250 (up) and 3225 (down) on the S & P 500 and 12300 (up) and 12150 (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. I have added the P/E ratio valuation measures this week. Love your thoughts and feedback.