Our Technical Tuesday Chart of the week - Update on TLT and three Financials we have on is 70%. The MFU-4 gets achieved 25% of the time. That is still good enough for a trade from here.

The S&P 500 is into a short-term MOB band, which may result in a pause in the index. Once this zone is cleared, we expect price to tag the 4000 target level identified by our Money Flow Unit (MFU) analysis. The Nasdaq composite is into the MFU-4 level of 14000, and we think there will be a pause in the advance. We will need to see how the index trades in this zone in the coming days to determine if it’s something more than a pause or a breakout above this level.

The uptrends in the major U.S. indices remain firmly intact. The recent pullback in the S&P 500 and Nasdaq Composite held at an important support zone, and we see the start of another leg higher from here.

We have opted to focus on stock-specific ideas for clients looking for ideas on both the long and short side and have a shortened Technical Tuesday index report. Both the MDY and RUT have jumped out to us as both indices have a slight turn down from the upper end of their regression trend channels. We suggest trimming extended names as the odds are increasing for a short-term pullback.

The major averages continue to remain firm in their uptrends, and we have the S&P firmly above its target zone after going sideways since hitting that target in November.

It has been a little over one month now where we have the S&P stuck within the target zone of our Money Flow Unit and MOB band. This continues to be a pause area, and we would need a weekly close above 3750 to have a breakout of this range. The Uptrend in the Nasdaq Composite remains intact, but we do have the daily chart indicating a potential stall zone directly ahead. No divergence, therefore no sell signal.

Of the major indices, the S&P is “stuck” at a target zone between 3560—3690 which has us take a small short position in the Emini. We would need to see strong momentum from here to negate this cautious zone.

Both the S&P 500 and Nasdaq Composite are within target zones where we can expect a pause or pullback to occur. If it is the start of a pullback, we need to wait for negative money flow units to form to determine the downside projections.

The weekly charts of the S&P 500 and Nasdaq Composite shows these indices right at their uptrends and appear ominous to break lower

We have both the S&P 500 and Nasdaq Composite both grinding lower after turning down from their short-term money flow units (MFU), and approaching important support zones.

We have the S&P 500, Nasdaq Composite, Mid-Cap (MDY), Dow Transports, and Dow Utilities all into target zones where we expect a pause or pullback to occur. The strong momentum of the last four days has these targets getting hit quicker than expected.

The S&P 500 and Nasdaq Composite have both moved up above their 50-day averages with good momentum. Both indices appear to have formed small bases, “head & shoulders” pattern, and they look poised to move higher from here.

The S&P 500 formed a negative Money Flow Unit (MFU) this week, which has the index in a weak position. The only way this gets negated is for a close above the recent high at 3440.

A number of the indices reviewed had a sharp downside reversal last week, which we consider a cautious flag to the advance. We remain cautious the Russell 2000 and Mid-Cap (MDY) and continue to suggest reducing exposure. We are on alert for both the S&P 500 and Nasdaq Composite as these indices approach their near-term support zones. The ratio chart of MTUM vs. SPLV reversed hard from our MOB target level, and we expect more weakness for MTUM. We remain short the TLT.

The uptrends for both the S&P 500 and Nasdaq Composite remain intact but approaching target zones where we will be looking for a pause or pullback. We are concerned with the loss of upside momentum for the Russell 2000 and Mid-Cap (MDY) after coming into an area of resistance and target levels. We would be reducing exposure to both those segments of the market. The ration chart of the Momentum Factor (MTUM) ETF vs. The S&P 500 Low Volatility ETF has achieved the MOB target highlighted on August 18. We are taking partial profit right here. Lastly, we remain short the TLT and would be adding on short-term strength.