The S$&P 500 was unchanged and the Nifty rallied last week. Indicators are mixed for this week. The S&P is failing again and it is headed to 1800 in a case for the sell in May and go away. Long term, the epic meltdown is set to continue resulting in a 5 year plus bear market with lot lower levels maybe as low as 800 on the S&P. QE forever from the Fed is about to trigger the deflationary collapse of the century and we have made a 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. High valuations continue. The breakdown in Crude and the Euro is a precursor to yet another massive drop in the S&P 500. The recent global virus epidemic (black swan) is likely to dent global GDP significantly and usher in depression much faster than most think. The trend has changed from bullish to bearish and the markets are getting smashed by a strong dollar. Looking for significant underperformance in the Nifty going forward on rapidly deteriorating macros. A 5-year deflationary wave has started in key asset classes like the Euro, stocks, and commodities amidst a number of bearish divergences and overstretched valuations. We are entering 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 into a recession. The critical levels to watch for the week are 2845 (up) and 2820 (down) on the S&P 500 and 9950 (up) and 9750 (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.