We had strong upside momentum in both the Nasdaq Composite and S&P in the last four days.

WTI Crude Oil is turning up from a support area, and we see an initial near-term target of $69 from here, followed by higher prices after that.

The momentum shift in energy has taken hold. We would be adding to the XOP long and individual names in the group. The long trade was initiated on March 26 when price reversed off the blue ellipse buy signal. Happy to help with specific names.

We pointed out in our March 16 Technical Tuesday report that we were seeing a good recovery in the SMH and to selectively add to the group.

We like the pullback in WTI Crude and this setup in XOP. The stochastics below is about to turn up. More to come. Needed to get this out.

The S&P 500 and Nasdaq Composite have come down marginally from last week’s highs with the deepest pullback in the Russell 2000 and Mid-Cap (MDY). The MDY has pulled back to an ellipse buy zone, and from here, we would like to see a reversal up to confirm the buy. The pullback in the Dow Transports has been shallow, and the index is into a buy zone. As with other buy signals we are getting, we want to confirm reversal before committing new capital.

The S&P 500 is very close to our target level of 4000, which is where we would first look for a pause/pullback to occur. The Nasdaq Composite reversed off the MOB band and has now rallied back above the lower end of its channel line and 50-day average. A positive development.

The recent pullback in equities has provided a buy in the S&P 500, Russell 2000, MidCap 400 (MDY), and the Airlines. The Nasdaq Composite weakness brought the index below its regression trend channel and at an important Make or break (MOB) support band. If the index cannot reverse from this zone, there is risk of another leg lower.

We noted in our Tuesday report that we would add to our long position on a close above $85, but given the strong breadth in the sector, we believe we will get a close above $85 and would be adding right here.

The intermediate-term trends of most of the major averages reviewed remain intact. We continue to look for higher prices in most indices but realize the technology heavy Nasdaq Composite may be In a choppy range for a while.

We got the pause that refreshed in the XOP when price hit our MFU-4 target of $85.

The recent pullback in the market resulted in a number of buy signals in many indices. We have “ellipse” buy signals in the following indices: S&P 500, Nasdaq Composite, Russell 2000, MidCap (MDY), and the Semis (SMH).

Gold was able to hold the MOB support band in the $1760 area, and has now broken above the short-term resistance area.

The pullback we were looking for was short lived at the MFU-3 level. We are going back to a long position with the anticipation of a strong leg ahead. We remain long XOP and would be adding here.

The March Copper is very close to our MFU-5 target of $3.9447, slightly above the regression trend channel and with momentum divergence.