The S&P 500 has been hovering around the MFU-3 target area of 4225 since late April and just recently successfully tested its 50-day average and triggered an ellipse buy. A weekly close above the most recent high would be positive and will likely lead to the next leg higher. On page 3, we show the weekly chart of the S&P, which remains well contained within its regression trend channel.

The reversals we talked about in our last report on May 25 now have a few indices, such as the NDX and Russell 2000 breaking out above important resistance zones.

Most of what we talked about last week remains the same. Here we wanted to highlight a possible positive shift taking place in the Russell 2000. We will have more to say once the upside level gets triggered from the chart view below.

We got very good reversals last week in the market averages we cover for this report, and we now are seeing momentum indicators starting to hook up from being oversold.

The S&P 500, Russell 2000, and the Mid-Cap (MDY) pullback to our target zones highlighted in recent reports. This may be all we get for a pause/pullback phase.

The reversals in the S&P 500, Nasdaq Composite, Russell 2000 are taking hold. We believe there is more weakness from here.

We are cautious short-term as the following major indices are at either a Money Flow Unit (MFU) target or MOB target band: S&P 500, Nasdaq Composite, Russell 2000, and MidCap (MDY).

We wanted to highlight a couple of charts that are jumping out at the moment. The NDX is at a MOB target band where it has been in pause mode for the last two weeks. The SMH has broken above its short-term downtrend and may be setting up for a place to add exposure.

We got a reversal at or close to target zones on the S&P 500, Nasdaq Composite, and the Mid Cap (MDY).

The index is into a MOB target band and the mid-point of its regression trend channel as a resistance area.

We are going to keep the report short today as we want to focus on what is changing on the margin with the indices we cover and send those thoughts out as needed.

We had strong upside momentum in both the Nasdaq Composite and S&P in the last four days.

The S&P 500 and Nasdaq Composite have come down marginally from last week’s highs with the deepest pullback in the Russell 2000 and Mid-Cap (MDY). The MDY has pulled back to an ellipse buy zone, and from here, we would like to see a reversal up to confirm the buy. The pullback in the Dow Transports has been shallow, and the index is into a buy zone. As with other buy signals we are getting, we want to confirm reversal before committing new capital.

The S&P 500 is very close to our target level of 4000, which is where we would first look for a pause/pullback to occur. The Nasdaq Composite reversed off the MOB band and has now rallied back above the lower end of its channel line and 50-day average. A positive development.

The recent pullback in equities has provided a buy in the S&P 500, Russell 2000, MidCap 400 (MDY), and the Airlines. The Nasdaq Composite weakness brought the index below its regression trend channel and at an important Make or break (MOB) support band. If the index cannot reverse from this zone, there is risk of another leg lower.