The S&P 500 and the Nifty were relatively unchanged last week. Indicators are marginally bullish 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 that will probably fail at resistance near 3125 on the S&P 500. The market is looking like the short of a lifetime with non-conformations from the transports, other global indices and commodities, and insane valuations. A massive drop in the S&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 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 overstretched 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 3120 (up) and 3100 (down) on the S&P 500 and 12000 (up) and 11800 (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.