Last week's pullback had a number of indices holding regression channel support areas and have now turned up. We believe the bias is to the upside and would pay close attention to the small and mid-cap area.

Last week's orderly pullback has provided an opportunity to add to long exposure. We like the setup in the S&P 500 Emini on the long side. The Mid-Cap (MDY) reversed off its regression trend channel and looks poised to move higher. Within HealthCare, we suggest looking at the biotech group on the long side. Both the IBB and XBI are at new all-time highs.

All the indices reviewed rallied sharply off their respective regression trend channels and look to have more upside. We highlight the Financials ETF (XLF) and WTI Crude Oil as well.

Upside momentum is expanding with small and mid-caps catching up to the large caps. Technology looks like it is turning back up relative to value, but we still like value such as financials.

The SP 500 is well above its MFU-2 level and has cleared its 200-day average.  We have an upside MFU-3 target at 3360 from here.

We are not chasers of momentum and continue to see indices in areas we don't want to chase. Two important observations from today's action is that the Nasdaq Composite has achieved its MFU-4 target at 9345 which we have been highlighting for some time, and we see a shift starting in Momentum (MTUM) vs. Value (SPLV.)

We have all of the indices reviewed at or very close to areas where we would be expecting some near-term weakness. Our favored shorts would be in the Russell 2000 and Mid-Cap (MDY).  The Dow Transports and Utilities are in a very weak technical position, and we expect further weakness from here. The S&P 500 rallied back up into its MFU-2 target of 2953, and we would take a short here as well.

We are seeing some severe breaks of the bearish wedge patterns we have been highlighting in recent reports. We would be short all but the Nasdaq Composite which needs a bit more of a break lower to confirm. We would concentrate shorts on the Russell 2000 and the MDY.

The daily charts in many of the indices review have negative wedge patterns in place that we expect will lead to some near-term weakness.. The Dow Transports and Utilities are in a weak position and we expect more weakness in the days to come.

We have many of the indices reviewed, hitting their ellipse turning point indicator and forming a bearish wedge pattern. Will we get a pullback from all this or just another pause that refreshes, we don't know, but we prefer to be buyers of a pullback than to chase in here.

We have the daily charts of all the U.S. indices we review at an ellipse turning point indicator. This increased the risk of weakness from here.

After a brief pause early last week, the indices we review have had a strong move higher with some at their 50-day average or 50% retracement zones.

In today's report, we find all the U.S. indices we typically review are at reversal points and starting the pullback. What we don't know at this point in time is if we get a full retest of the lows or a break lower.

The European, Asian and Emerging market charts we typically review have rallied off the recent low, and we await to see what we get for a test.

We are only covering the U.S. markets with today's piece as we have spent most of the day, putting out short ideas to clients.