At this point it looks as if the market is in the middle of a short-term pullback and nothing more. Both QQQQ and SMH are clearly above important support levels, while IWM is currently lingering right below them.

The next support level for QQQQ is the 50 day moving average and the horizontal support at 46.70. A break of these levels would likely bring the ETF to 46. At this point, we feel it is most likely that QQQQ will be able to stay above both the 46.70 support and the climbing 50 day moving average. A break to the 46 area would not be a large issue, it would just mean we would have to wait a bit longer before we increased our gains on the current signal.

SMH is right above its horizontal support level of 37.50. A break of this area would bring the ETF to its 50 day moving average and next horizontal support of 37. If SMH does fall to 37, currently we do not foresee a break below this area. A break above last Thursday's high would suggest that the pullback is over.

IWM does not look as healthy as the other two ETFs. It is currently sitting right below its 50 day moving average and looks as if it is headed to the 81.80 support level. A break of this level would signal a fall to 81. From a technical point of view it is important for IWM to stay above 81.80. A break below this level will not signal a new downtrend, but will suggest that there will be a longer time to wait before the ETF clears recent highs.

The stock market is most likely in the middle of a short-term pullback.