We highlight the iShares MSCI World ETF (URTH) once again to have investors keep in mind that the Developed Global equity markets are in a bullish trend phase. Both the Emerging Markets ETF (EEM) and the iShares Brazil ETF (EWZ) triggered a buy. We would take a long position with a stop just below their 200-day averages.

We continue to have a bullish bias for all of the markets we review in this report.  Upside momentum is expanding for many U.S. indices, and we see that more so for the Russell 2000 and Mid-Cap (MDY).  We reviewed the iShares MSCI World ETF (URTH) once again and believe it's in the early innings of its advance.  The DAX appears poised for another leg higher as it makes its way above our target zone of 13400.

We are focusing on the U.S. markets this week, and highlighting the Industrials and Health Care sectors as areas we would be adding exposure.  We will follow up with a deep dive in both areas and highlight both long ideas and equities to avoid.

The S&P 500 had a monthly close above our 3180 target which now opens the upside to 3500.  U.S. small and mid-caps have lagged the large caps, but their uptrends remain firmly in place.  After pausing at our MFU-3 target for seven weeks, the DAX has cleared that level and we would be adding exposure.  We would be adding to the Hang Seng and China's Shanghai Composite right here.

Intermediate and long-term trends remain favorable for many markets we cover.  We are looking for a monthly close above 3180 for the S&P 500, which will then target 3500 for 2020.  European market continue to look positive.  Italy's FTSE MIB looks very bullish!

We remain neutral the S&P 500 with the index into our long-term target of 3180.  The Small and Mid-Caps continue to trade well with improving upside momentum.  European indices may be on the verge of another leg higher.  The EEM has turned up nicely and looks to have more upside.

Some short-term changes being made on several indices both here and abroad.  We went short the S&P 500 Emini on November 20 and will hold that position for now. There is continued follow through for the TLT after its buy signals we highlighted 2-weeks ago.

The S&P 500 is very close to our 3180 target and overbought on a short-term basis.  We are going neutral on a near-term view within the context of a bullish long-term uptrend.  The Nasdaq Composite is also into a target zone, and we expect a pause/pullback to occur.  This index is also going to a neutral view short-term.  We got the buy signal in the Health Care Sector ETF (XLV) and see higher prices from here.  The 20+ Year T-Bond ETF (TLT) has a buy signal in place.

Momentum remains favorable for a number of U.S. and European markets.  The S&P 500 is well above support and on its way to our long-term target of 3180.  We took off our tactical sell on the MDY as the index has started to break above the recent highs.

We reversed our short-term tactical sells for the S&P 500 and Dow Transports as those indices have broken above their respective resistance zones.  Both the Russell 2000 and Mid-Cap (MD) are on the cusp of doing the same.  The long-term trends remain intact, and we are looking for further upside in the weeks to come.

We will be traveling this week and back in the office next Monday. In the meantime, we wanted to get out our current thoughts on these three indices, and what it would take to turn these indices bullish. There will be no Technical Tuesday this week.

For the U.S. markets, we wanted to focus on the weekly sell signals that were generated a few weeks ago, and therefor avoided trying to catch the short-term turns. Both the S&P 500 and Dow Transports have rallied back to their ellipse resistance zones, so we need to see how they trade into this area.  Both the DAX and Italy's FTSE MIB have both cleared their ellipse sell zones with good momentum. We are back on the bullish call for these markets. The Nikkei remains resilient and on target for the 23000 zone.

Although we had some recent short-term buy and sell signals in the S&P 500, we have yet to see any buy signals based on the important intermediate-term time frame. The sell signals we have been talking about in recent weeks remain in effect. The Dow Utilities and Nikkei remain favorable, while China's Shanghai Composite is close to generate a sell.

We are on alert for any buy signal in the days and weeks to come.

The sell signals we highlighted on September 24 remain in effect for a number of the U.S. and European markets. At a minimum, we have been expecting a 5% - 6% decline at which point, we need to see these markets hold key support levels. We would be very concerned of the August lows are breached in a decisive manner which would likely negate the long-term targets.

Lots of changes this week as we had weekly ellipse sell signals triggered on the close of last week. The sell signals were triggered for the S&P500, Nasdaq Composite, Russell 2000, Mid-Cap (MDY) and the Dow Transports. The long-term trends remain intact, but we do see about -5% downside. We would like to see how the indices hold their long-term uptrends in the coming days/weeks.

In Europe, the DAX, CAC and Italy's FTSE MIB appear to be failing at resistance. We went long the DAX and CAC last December and will capture about +20% in each index. We are short the Hang Seng and see a minimum of -5% from here.