This week, we are sending out our review of Currencies, Commodities and the U.S. 10-year. We would like to note that the sharp reversals in stocks such as FDX, UPS, CSX and KEX in the Dow Transports, the index has turned negative and is at risk to test the June lows. We are going to a negative stance for now.

We remain bullish on almost all markets we cover on a weekly basis. Upside momentum has increased for these markets and we highlight our near and long-term targets.

Our intermediate to long-term views have not changed.

In this weeks review, we are focusing on the U.S. market indices. When looking at the intermediate to long-term trends, we don't have any change and remain bullish. Short-term, the recent market pullback has offered a good reward to risk buy for the S&P, Nasdaq Composite, and soon to be seen, the Dow Transports.

We remain bullish on most markets reviewed. Both the S&P 500 and Nasdaq Composite have pulled back to ellipse support to trigger a buy on a daily basis.

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.