Initial downside to the channel mid-point at 2.4% for the 10yr TNote Yield.

TLT has pulled back to the lower end of its regression trend channel.  We would get long here for a trade up to the MFU-4 at $127.50.

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

Crude oil is at a 6-month high this morning with news that the U.S. says it will end Iran sanction waivers. This puts WTI above the MFU-4 level of $64 and opens the upside to our next target of $69. We would be adding to long 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 compared and reviewed a list of U.S. and Non-U.S. industrial stocks using the XLI and EXI ETFs. After a -5% decline in March for the XLI and a -4% decline for the EXI, both ETFs have started to turn up within the context of a 3-month absolute uptrend.

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.

We will be traveling this week and not be publishing our Technical Tuesday piece but wanted to share a few thoughts on the S&P and WTI Crude Oil.

The DXY has turned up after holding at the lower end of the regression trend channel.

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.

Fielding client questions today about the recent market pullback, we thought to send out this chart of the S&P to highlight what we are seeing.

The SMH is clearing a 1-year downtrend with strong momentum.

The DXY has pulled back to channel support and is reversing from this oversold area.

The 10-yr. yield and TLT both achieved our Money Flow Unit target levels, and we are closing out our technical calls for each.

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.