It is now clear that the recent pullback is over and that we are in the middle of a mid-term uptrend. QQQQ has broken above 2007 highs and SMH and IWM are not far behind.

The recent consolidation in QQQQ will allow the ETF more room to grow before a mid-term downtrend develops and our system triggers a sell signal. Short-term pullbacks generally push out the weak sellers and allow for further gains on the upside.

SMH has also been in a consolidation for weeks. Resistance is at the 38.60 level. A break of this area should push the ETF to 2007 highs (around 39) before a powerful move higher. At this point, we do foresee SMH having a strong move above 39 before our system triggers a sell signal.

IWM's next resistance level is at 84. A break of this area should bring the ETF to the 84.70 resistance, before a push to the resistance at all-time highs. IWM is clearly above its 50 day moving average and the chart pattern is looking more healthy each day.

The ETFs we follow are in the middle of an uptrend and the recent consolidation patterns will allow for strength in the days ahead.