The next day or two should give us clear clues as to if the recent pullback is over. All of the major indices are at or right above or below strong support. A sustained break of this support will suggest that we clearly have more to the downside, while the markets ability to stay above recent lows in the coming days will signal that the bottom is in.

The NASDAQ 100 fell into 2180 support today. This is a critical level. If the index breaks below this number there is a good chance we will fall to 2125. If the NASDAQ 100 is able to hold the 2180 support, we are headed to recent 2007 highs, before a continued push higher. It isn't extremely surprising that the index has fallen back to its breakout point from the rectangle formation that was carved out in October. You could make ! the argument that 2200 was the breakout area, but falling back an additional percent is not a problem. Now that support has been hit, it is likely the index is going to continue its longer-term uptrend.

Two weeks ago SMH fell into strong support on very high volume. Notice the three high volume bars starting on the 23rd of October. This is often a sign of a key reversal. Indices and often stocks reverse after a high volume move below recent lows or above recent highs. SMH could test the 33.40 support again, but if the ETF does we believe that it will bounce higher.

IWM is possible forming a double bottom formation with today's low being the second bottom. A break of 78 could suggest a further move to the 74 or 75 area. If the 78 level is held, the ETF has already found the bottom of the recent pullback.

The next couple of days will likely tell us if the recent pullback is over.