The S &P 500 was up and the Nifty was unchanged last week. Indicators are bullish for this week. Despite the big rally markets only got as far as the breakdown trend lines. An epic meltdown is just around the corner. 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 lifetime with non-conformations from the transports, other global indices, and commodities. Insane valuations continue. The breakdown in Crude and the Euro is likely a precursor to a massive drop in the S&P 500. The recent virus epidemic in China is likely to dent global GDP and usher in a recession much faster than most think. 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 3390 (up) and 3370 (down) on the S&P 500 and 12200 (up) and 12050 (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.