Currently, our mid-term system is in between neutral and moderately overbought. It is possible that a strong day higher tomorrow could trigger a sell signal, but it is not a definite. A moderate day higher would most likely not trigger a change in signal with our system. If the next two days are higher we would most likely have a sell signal. Remember, that down days relieve the overbought state of the market and allow more time for a sell signal to emerge. Therefore, a day or two lower from here could prolong the mid-term uptrend.

QQQQ broke out today and we are not showing it, as there is little to predict from this chart.

As the NASDAQ Composite has lagged, we will use this to suggest a possible stopping point for this uptrend. 2007 resistance is at 2725 and a quick move to this area would likely lead the index to retrace some of its recent gain. 2725 is over 2% away from today's close. If the index does pullback from here, we believe the stopping point will be the 2625-2635 area.

SMH is likely headed to 39.50 next, followed by a possible move to 40.50. When looking at a chart of this ETF, it looks as if there is much more room to grow before a pullback. This contradicts the above chart of the NASDAQ Composite which suggests that the recent uptrend is about complete.

IWM looks as if it has much room to grow as well. Today, the ETF fell back to 80 support, which was to be expected. The next move is likely a push to 82, followed by a push to 84. As our mid-term system is getting close to being overbought, it will be interesting to see how IWM plays out in the coming days. Either our system will be a little premature in its sell signal, QQQQ will fall back a bit before another push higher (allowing for higher gains in all three ETFs), or IWM will significantly outperform.

We are receiving mixed signals when looking at our system and the three charts below. In the end, we always follow our objective system.