Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning August 27

Indicator
Weekly Level / Change
Implication for
S & P 500
Implication for Nifty*
S & P 500
2875, 0.86%
Bullish
Neutral
Nifty
11557, 0.75%
Neutral **
Bullish
China Shanghai Index
2729, 2.27%
Bullish
Bullish
Gold
1213, 2.46%
Bullish
Bullish
WTIC Crude
68.72, 5.38%
Bullish
Bullish
Copper
2.70, 2.72%
Bullish
Bullish
Baltic Dry Index
1697, -1.51%
Bearish
Bearish
Euro
1.1621, 1.54%
Bullish
Bullish
Dollar/Yen
111.17, 0.54%
Bullish
Bullish
Dow Transports
11285, 0.51%
Bullish
Bullish
High Yield (ETF)
36.01, 0.42%
Neutral
Neutral
US 10 year Bond Yield
2.83%, -1.64%
Bullish
Bullish
Nyse Summation Index
559, 30.98%
Bullish
Neutral
US Vix
11.99, -5.14%
Bullish
Bullish
Skew
148
Bearish
Bearish
20 DMA, S and P 500
2842, Above
Bullish
Neutral
50 DMA, S and P 500
2801, Above
Bullish
Neutral
200 DMA, S and P 500
2722, Above
Bullish
Neutral
20 DMA, Nifty
11406, Above
Neutral
Bullish
50 DMA, Nifty
11075, Above
Neutral
Bullish
200 DMA, Nifty
10641, Above
Neutral
Bullish
India Vix
12.41, -5.72%
Neutral
Bullish
Dollar/Rupee
69.75, -0.04%
Neutral
Neutral
Overall
S & P 500
Nifty
Bullish Indications
14
14
Bearish Indications
2
2
Outlook
Bullish
Bullish
Observation
The S and P 500 was and the Nifty were
up last week. Indicators are bullish.
The markets are close to making
secondary tops. Watch those stops.
On the Horizon
Euro Zone – CPI, German employment data, U.S – GDP, Canada – GDP
*Nifty
India’s Benchmark Stock Market Index
Raw Data
Courtesy Google finance, Stock
charts, investing.com
**Neutral
Changes less than 0.5% are considered
neutral

stock market signals august 27


The S and
P 500 and the Nifty were up last week. Indicators are
bullish for the upcoming week. This rally is close to a major secondary top in key asset
classes which has already formed in the Euro and commodities. This is going to
be followed by a massive selloff most likely a deflationary collapse. Quantitative
tightening by the FED is yet to be priced in fully. The markets are still
trading well over 3 standard deviations above their long term averages from which
corrections usually result. Tail risk is also very high. The critical levels to
watch for the week are 2885
(up) and 2865 (down)
 on the S & P 500 and 11650 (up) and 11450 (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.

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About rajveeronmarkets

I am an avid market watcher having followed capital markets in the US and India since 1993. My research interests includes areas of Capital Markets, Banking, Investment Analysis and Portfolio Management and have over 20 years of experience in the above areas covering the US and Indian Markets.
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