We are not chasers of momentum and continue to see indices in areas we don't want to chase. Two important observations from today's action is that the Nasdaq Composite has achieved its MFU-4 target at 9345 which we have been highlighting for some time, and we see a shift starting in Momentum (MTUM) vs. Value (SPLV.)

We have all of the indices reviewed at or very close to areas where we would be expecting some near-term weakness. Our favored shorts would be in the Russell 2000 and Mid-Cap (MDY).  The Dow Transports and Utilities are in a very weak technical position, and we expect further weakness from here. The S&P 500 rallied back up into its MFU-2 target of 2953, and we would take a short here as well.

We are seeing some severe breaks of the bearish wedge patterns we have been highlighting in recent reports. We would be short all but the Nasdaq Composite which needs a bit more of a break lower to confirm. We would concentrate shorts on the Russell 2000 and the MDY.

The daily charts in many of the indices review have negative wedge patterns in place that we expect will lead to some near-term weakness.. The Dow Transports and Utilities are in a weak position and we expect more weakness in the days to come.

We have many of the indices reviewed, hitting their ellipse turning point indicator and forming a bearish wedge pattern. Will we get a pullback from all this or just another pause that refreshes, we don't know, but we prefer to be buyers of a pullback than to chase in here.

We have the daily charts of all the U.S. indices we review at an ellipse turning point indicator. This increased the risk of weakness from here.

After a brief pause early last week, the indices we review have had a strong move higher with some at their 50-day average or 50% retracement zones.

In today's report, we find all the U.S. indices we typically review are at reversal points and starting the pullback. What we don't know at this point in time is if we get a full retest of the lows or a break lower.

The European, Asian and Emerging market charts we typically review have rallied off the recent low, and we await to see what we get for a test.

We are only covering the U.S. markets with today's piece as we have spent most of the day, putting out short ideas to clients.

Just about all the indices reviewed have the same look, a sharp decline, and now the first sizable rally off a low. We would expect a retest at some point in the coming days/weeks, which will provide a more sustainable advance.

With global markets in freefall, we are only highlighting two markets that we have something of note to talk about.

This swift global equity market decline sparked by the coronavirus outbreak has put many markets in a weak position. In the U.S., the Russell 2000, Mid-Cap (MDY), and Dow Transports are below long-term trend support. In Europe, we had some indices at or very close to our upside target zones and now have revered and look very weak. The chart of the S&P on page 3 shows two scenarios we have for a bullish or bearish outcome from here. Things should become clear in the coming days as to which one takes hold.

We are covering the U.S. markets in today's report and will follow up with the European and Asian markets later this week. The volatile markets have distorted the short-term structure in many indices, and in most cases, the long-term structure remains intact.

We review the long-term monthly charts of the Russell 2000 and Value Line Geometric Indices and believe they are ready for another leg higher.