At this point it is quite possible that the stock market has already hit the bottom of the recent downtrend, but we still need to see higher prices before we know that this is a new uptrend and not a correction within the recent downtrend.

QQQQ has formed a pretty classic double bottom formation over the last three weeks. We are currently sitting at the top of that formation and have not broken above resistance yet. A sustained break of 43.50 should bring the ETF to the 44 area at a minimum. The more likely stop would be the 44.50 area, which is where the market gapped down at the opening on February 27th. A break of the 43 area to the downside would suggest that the double bottom formation is not valid and that a retest of the 42 area would be likely.

SMH is still in the same trading pattern it has been in for months. The 33 area is major support for the rectangle formation and the 36 area is major resistance.

Like QQQQ, IWM has also recently formed a double bottom formation and has not yet broken above it. Today's high was at the resistance of the formation. A sustained break of the 78.50 area should push the ETF to the higher resistance lines shown on the chart. A break of these lines should push IWM to 81, before a test of all-time highs.

It is too early to say that the mid-term downtrend has definitely ended, but recent action suggests that it is quite possible that the bottom is in.