The annotations included below on the daily chart for the S&P 500 ($SPX) indicate that the 1320 area is a viable target in coming sessions. Attainment of this key level will motivate the growing cadre of bulls and could provide an opportunity for the bears to move off the sidelines and flex their muscles again.



The hourly chart for the Euro shows how we broke down below the $1.56 level yesterday and validated the prognosis from last week's commentary. In today's trading the $1.57 level should be a likely target and this might also be considered a fair value position prior to tomorrow's key economic data.



Brazilian stocks, as captured in the sector fund, EWZ, staged a comeback rally yesterday following several weeks of sliding prices. The positive MACD divergence suggests that there could be sufficient momentum to take us back through the 50-day EMA and back towards the $90 level.



The Ultra Short Oil and Gas sector fund, DUG, has proven to be very profitable on the long side recently but as suggested here last week there is a definite technical hurdle to overcome at the 200-day EMA which is just above $36.



Gilead Sciences (GILD) faces a chart hurdle at $54.



Clive Corcoran is the publisher of TradeWithForm.com, which provides daily analysis and commentary on the US stock market. He specializes in market neutral investing and and is currently working on a book about the benefits of trading with long/short strategies, which is scheduled for publication later this year.

Disclaimer
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