We believe that the ETFs we follow are toward the end of a short-term pullback. QQQQ is looking quite healthy, while SMH and IWM are looking less bullish.

You can see from the annotated chart of QQQQ that today's low is right above the blue uptrend line that has formed from the last five weeks of action. The ETF also has support on its 50 day moving average, which is right below today's low, and the horizontal support under 48.50. We expect QQQQ to stay above these areas. A break of these areas would push the ETF to 48.

SMH's pattern does not look bullish, but it is still quite possible that we are just in the middle of a pullback within the larger uptrend that started in the middle of August. Fibonacci retracements placed on the chart suggest that the ETF should stay above 36.50 if we are to look at the decline as a pullback within a larger uptrend. Horizontal support sits under 36.50 as well.

IWM is still locked between the double bottom formed last month and the powerful resistance at 80. The declining 50 day moving average is sure to add resistance to the ETF. A break above 80 is extremely bullish, while a fall below the support lines shown would be a cause for concern.

By tomorrow, we should have a clear idea of whether we are just in a short-term pullback or if our buy signal was a bit premature.