Market Signals For The US Stock Market And Indian Stock Market - Monday, Dec. 24

 

The S&P 500 and the Nifty fell last week. Indicators are bearish for the upcoming week. The market is oversold and may bounce a 100 points but a 5-year bear market is in the making. The trend is changing from bullish to bearish. Looking for significant underperformance 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. 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 has been very high off late. The critical levels to watch for the week are 2430 (up) and 2400 (down) on the S&P 500 and 10850 (up) and 10650 (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 comparison. Love your thoughts and feedback.

Disclaimer: The views expressed here are my own and must not be taken as advice to buy or sell securities.

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