The S&P 500 was down and the Nifty was up 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 are making a major secondary top in global equity markets. The market got its oversold bounce of about 450 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. The India VIX is finally catching up to the US VIX suggesting there may be a sudden catch up on the downside for the Indian market in 2019. 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 2760 (up) and 2730 (down) on the S & P 500and 11100 (up) and 10950 (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.