Uptrends remain firmly in place for most of the indices reviewed, with the exception being the Dow Utilities.  The S&P 500 is getting close to our MFU-3 target area which coincides with the February highs of this year.  We may see a pause in the advance into that area.  Upside momentum continues to expand for the Nasdaq Composite, and we highlight the Software group as an area to add exposure.

Trends for the S&P 500 and Nasdaq Composite remain favorable and we continue to see improvement in the Russell 2000 and Mid-Cap (MDY).  We also highlight three of our top scoring sectors based on our model.

Improving upside momentum has both the S&P and Nasdaq Composite ready for another leg higher. The small and midcaps have been in a tight range in recent days, and closing above their 200-day averages would be positive. Biotech recently broke out of a consolidation pattern and poised for another leg higher. We would be adding to this group. The iShares Tech-Software ETF (IGV) had a sharp reversal from support and looks to go a lot higher. We highlight nine stocks that screen well and would be adding to.

Large caps continue to forge ahead with the S&P 500 outperforming both mid and small caps. We don't see any distribution in the Nasdaq Composite, but we do have an overbought reading with momentum nonconfirmation.

Last week, both the S&P 500 and Nasdaq Composite had a strong rally off support with the Nasdaq finally coming into the upper end of its channel and MOB target zone. We don’t have any divergence at this time, so all we can say is that this is a zone for a pause for the NASDAQ.

Last week's pullback had a number of indices holding regression channel support areas and have now turned up. We believe the bias is to the upside and would pay close attention to the small and mid-cap area.

Last week's orderly pullback has provided an opportunity to add to long exposure. We like the setup in the S&P 500 Emini on the long side. The Mid-Cap (MDY) reversed off its regression trend channel and looks poised to move higher. Within HealthCare, we suggest looking at the biotech group on the long side. Both the IBB and XBI are at new all-time highs.

All the indices reviewed rallied sharply off their respective regression trend channels and look to have more upside. We highlight the Financials ETF (XLF) and WTI Crude Oil as well.

Upside momentum is expanding with small and mid-caps catching up to the large caps. Technology looks like it is turning back up relative to value, but we still like value such as financials.

The SP 500 is well above its MFU-2 level and has cleared its 200-day average.  We have an upside MFU-3 target at 3360 from here.

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.