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The stock market has most likely started the new uptrend. If the indices do pullback from here, they will most likely just fall into a consolidation period before their next move higher.
QQQQ broke out of its recent cup pattern today before pulling back to its breakout point. We have used a blue line to show the new uptrend. As long as QQQQ remains above the 46.70 support level we can assume that a new uptrend has started. A downward break would most likely leave the ETF in a consolidation before its next move above 2007 highs.
SMH could be forming a head and shoulder topping formation. April 25 would be the first shoulder, May 14 the head, and today's high would have formed the second shoulder. If this is true, the ETF's next move would be to the 35.70 support level and the 50 day moving average. As long as the 37 support is held, we can assume that this is not true and that SMH is just consolidating before its move above the May 14 high.
IWM has hit all-time resistance again. This time the ETF should be able to break above the 83.20 area. As long as IWM does not descend below today's low, we can assume this is true. A break of today's low, should push IWM to 81 and continue the consolidation period.
The stock market looks like its ready for another move higher. As long as the support levels mentioned tonight are held, we can assume that this is the case. Otherwise, a longer consolidation period will likely happen.
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