The next chart is of SMH. So far SMH has outperformed both QQQQ and IWM this buy signal.

Today the stock market pulled back for the second day in a row and possibly ended the short-term decline. The indices we follow are at or near medium levels of support, so our view is that if the stock market did not bottom today, it will very soon.

The first chart is of QQQQ. The Qs low was right above 40 today. 40 has served as both significant resistance and support for many months now. You can see from the chart that the ETF is also right above its 200 day moving average. If the 40 level is broken, we expect QQQQ to bottom in the 39.50-39.70 area.

The next chart is of SMH. So far SMH has outperformed both QQQQ and IWM this buy signal. We have shown an uptrend line (blue) on the chart that started in the middle of August. SMH has minor support at 34. A break of this area should push SMH to the uptrend line and/or the 33.40 area.

IWM's low today was at one of our support levels. The close was right above its 200 day moving average as well. If IWM does break the 71 level we would expect support to hold at the 50 day moving average. We do not see the possibility of a decline below the 70 area.

As you can see from tonight's charts, the three ETFs we follow are currently sitting on support and more significant support is a little more than a percent away. If the stock market hasn't bottomed yet from its short-term pullback, it should bottom very soon.