We believe that the low from the late February decline has already happened and that we are quickly approaching a sell signal. A couple of days of weakness would allow the stock market to continue higher this mid-term uptrend, while a couple more higher closes should put an end to the advance.

QQQQ filled the gap today from the decline that started at the end of February. As would be expected, the ETF fell after reaching that level. Even though that important level would create weakness in the short-term, it is important that QQQQ was able to reach it. If the 44.10 area does not stop any further decline, the 50 day moving average should. If the ETF does not fall further from here, we see a push to 2007 highs by the end of the week. We believe a fall would just delay the inevitable move higher from here.

SMH reached our 34.50 resistance level and has since declined back to the 34 support level.  We believe that the ETF will stay within the rectangle formation from 33-36 this buy signal. Next noticeable resistance is at 35, followed by the 35.50 area.

IWM has almost filled its gap from the late February decline. Any decline from here should be halted at the nearest support level shown and the 50 day moving average. Breaking these levels would just push the ETF to the 78.50 support and this would not threaten the current mid-term uptrend.

By now we know that the bottom of the recent mid-term downtrend has already occurred and we are nearing the completion of the current mid-term uptrend.