Last week we felt that the stock market was closing in on a bottom and any additional weakness would only push the indices a few percent lower. Each day it is becoming a stronger possibility that the bottom is already in and that the new uptrend has already started.

We have placed Fibonacci retracements on the chart of QQQQ below. We believe that a sustained break of the 50% retracement level and the 50 day moving average will be confirmation that the bottom was last Monday. The 44.50 level will certainly offer resistance, but any pullback from there should be mild and will likely stay above last Monday's bottom.

SMH is already on its way to 2007 highs. A clear break of 35 should push SMH to the 36 level, before a likely move above the six month resistance area. We believe that SMH has already put in its bottom and has started a new uptrend. We do not feel that any weakness will break below last Monday's low.

We have also placed Fibonacci retracements on our chart of IWM. Like with QQQQ, a sustained break above the 50% Fibonacci level and the 50 day moving average should be confirmation that the bottom is already in. A sustained break above the horizontal resistance lines on our chart will be a very clear confirmation that the new uptrend has started.

We do not know for sure yet if the bottom from the last signal of sell is definitely in, but each day it looks much more likely.