We believe this volatility, due to trade tensions with China, will be well contained and offer opportunities to add to long positions.

Momentum continues to build for China's Shanghai Composite and we would be adding exposure.

There is more improvement in the European indices as these markets continue to trade higher with very little daily pullbacks. We would be adding exposure to Germany as the DAX carves out a low as it did in 2016, and we have an initial target of +11% from here. We remain bullish the CAC, Spain’s IBEX, Italy’s FTSE MIB and the U.K. ETF (EWU).

We remain bullish on an intermediate to long-term view for the S&P 500, Nasdaq Composite, Russell 2000, the Dow Transports and the Mid-Cap MDY. Momentum continues to expand in a positive way as can be seen with the weekly charts of the S&P and Nasdaq Composite. The Dow Utilities are starting to lose upside momentum as it trades at its prior target area, we would be a seller of the group.

The DXY has gained upside momentum after a test of channel support, and we see it moving higher from here.

We highlight the consumer discretionary sector which has the third strongest model score out of the 11 sectors. We believe there is more upside here. The healthcare sector continues to trend nicely off the December low.

We maintain our bullish outlook for the S&P 500, Nasdaq Composite, Russell 2000 and the Mid-Cap MDY. Their intermediate to long-term trends remain positive, and we would use any near-term weakness to add to long positions.

The DXY remains above support with improving upside momentum. On the other side of the coin, we have the EURO hitting our initial target at 1.115 and remaining in a firm downtrend. Momentum remains very weak.

Short-term, the S&P 500, Nasdaq Composite and Russell 2000 pulled back to zones where we should see prices starting to hold and turn up from. The intermediate to long-term trends remain positive and we maintain our bullish view. We also remain bullish the Midcaps and would look to buy near-term weakness in the MDY.

The DXY is making its way above an important resistance area, and we expect it to trade higher from here.

Not much has changed in a week. Upside momentum remains firm and we have a number of indices above their 40-week average. Although most of the U.S. indices reviewed are overbought short term, it’s a “good overbought” where any weakness is short lived and met with more demand.

Not much has changed in a week. Momentum continues to build, and we have the S&P 500, Nasdaq Composite, Mid Cap (MDY) and Dow Transports making their way above their 40-wk. averages.

The next few days will be very telling for both the DXY and EURO. The overall bias for the EURO is weak and we are looking for a short-term rally to sell into.

Upside momentum remains very firm for a number of U.S. indices and we want to stay the course on our intermediate to long-term call which is bullish.

Please find in the attached pdf this weeks review of a number of currencies and commodities.