The stock market has likely hit the mid-term top. A new short-term uptrend started last Wednesday, but with the stock market being so extremely overbought we feel that if the move is not over, it should end within the next few days.

QQQQ's next support area is the horizontal support at 49. This is the breakout point after the ETF's last consolidation. A downside break of 49 should push QQQQ to the more significant breakout area of 48. The final support area is 47.50 and the increasing 50 day moving average. We do not foresee a move below these support areas this sell signal. It is possible that the move down will be even smaller before a new mid-term uptrend emerges.

SMH is still above what used to be very strong resistance at 40. Soon the ETF should be breaking this area to the downside and begin a decline to the 38.50 area. This horizontal support, in addition to the 50 day moving average, should put an end to the coming decline.

IWM has still not broken above 2007 highs. We feel it is extremely likely that the ETF will break its 50 day moving average and fall to the 82 support area this sell signal.

We do not feel that the gain on this sell signal will be large, as the decline is likely to be quite shallow. If the mid-term uptrend has not already hit its top, we feel there are only a few more days to wait.