The stock market's recent fall has been a bit surprising, but we have had an extremely strong performance this year and a short-term pullback in this performance is not surprising. The recent fall has been accompanied with extremely high volume and we believe it is likely that the bottom of this correction will occur within the next few days, if not tomorrow.

The NASDAQ 100 has broken the support lines we mentioned last week, but you can notice from the chart that it is right above the 61.8% retracement from the August incline. We believe that any further decline is extremely limited in room. The NASDAQ Composite also fell into its 200 day moving average today and is sitting at strong support. This is additional evidence that the correction is next to over.

If SMH breaks the recent lows, it is likely headed to the support lines shown on the chart. If this does happen, the additional fall will be about 3% lower than today's close. We do not see the ETF falling below this level.

IWM has stopped at the 76 level, but 75 and/or 74 is still possible. A break of Thursday's low will likely bring the ETF to the 75 level and a break of 75, should bring it to 74.

Even though the recent fall has hurt our portfolio, the bottom should come by the end of the week, if it is not here already.