On a short-term basis, we have a trading sells on the S&P 500, Nasdaq Composite, Russell 2000 and the Midcap 400 (MDY). All of these indices are into a confluence of resistance and overbought. Our intermediate to long-term view remains bullish as we had extreme readings on a number of market internals into the December low.

Volatility brings opportunity, and we sure have seen a lot of that in recent weeks. As we reviewed the a number of market indices and internals, we feel that for most markets, we have seen an internal low and now wait for the external low to take shape.

We recently suggested taking some profits at $1300 on Gold and now we would be adding back.

Gold coming into our secondary target zone.  This is a spot for a pause/pullback. 

After pausing at our initial target of $1265, gold has started to clear above that level by a good margin.  We would add to it here and are now looking for $1310 which is a MFU-3 target.  Unfortunately, not many of the gold stocks screen well on an absolute and relative basis, but we do have two that are shaping up and should be on the radar, ABX and GOLD.

WTI Crude Oil is approaching a range of support between $42—$45. Gold is close to our initial target of 1285 with improving momentum.

This are a number of U.S. and European indices that have either achieved their Money Flow Unit targets or have held and reversed from a Make or Break (MOB) support band or an Ellipse target. There is enough here for us to be covering shorts in these indices and in many cases, going long.

Gold momentum is improving and we are looking for the initial target of 1265 which is slightly above the 40wk average.

We are long gold and would be buyers here with a potential $20 upside to our MFU-2 target of 1265. For managers running long/short, consider going long February gold and short March copper.

WUBA is turning down at Ellipse point.  Target 50.75 with stop at 60.50.

Following up on our November 23 note of long CMG and pair trade of long CMG and Short SBUX, we would be adding to the trade.

Not much has changed for the U.S. markets when viewed on an intermediate-term basis. We did highlight a short-term buy in the S&P last week based on the daily timeframe and that buy remains in effect. Momentum for the Nasdaq Composite remains very weak and we would continue to use any strength to lighten up on Tech. Defensive areas such as Utilities are holding up very well and we had U.S.REITs as viewed by the IYR trigger a buy this week. We are working on a complete sector review for later this week.

The driver for the idea is CMG that turned up at the Ellipse turning point indicator and showing improvement in its money flow. For those that run long only, we would be a buyer of CMG, and for those running long/short, we like the pair trade of long CMG and short SBUX.

For an aggressive trader, we would be long the Emini with a stop just below the trendline at 2620.

We are looking for declines from this year's highs to be in the -18% to -20% range, yes, more to go.