The recent volatility and market weakness triggered a number of ellipse buys in the U.S. indices while most of the European indices have pulled back to support areas which keep them positive. The trade war headlines has brought the Shanghai Composite below its long-term average and uptrend off the January low. This puts the index in a weak position and cancels our bullish call.

The Nasdaq Composite is also approaching a target area which puts us on alert in the coming weeks.

Not much has changed in our view. We remain constructive on all the developed markets and cautious on the Kospi 100. Both the Russell 2000 and Mid-Cap MDY have pulled back to a support area where we would be adding exposure.

We remain bullish on many of the equity markets we cover on a weekly basis. The S&P 500 has cleared the 3000 mark and we believe our long-term target of 3180 off the 2009 low will be achieved in the months to come.  Stay long!

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.