Today, the Dow Jones Industrial Average and Russell 2000 broke out of their recent consolidations and into all-time highs. We believe it is only a matter of days before the NASDAQ Composite, NASDAQ 100, and S&P 500 break our of their consolidations and above their 2007 highs.

The first chart is of the Russell 2000. We have mentioned that the index had been in a possible head and shoulder or rectangle formation, but now it looks as if it was in an inverted head and shoulder formation. We have labeled the two shoulders and the head on the chart. Today, the index broke above the neckline in the formation and into all-time highs. If we look at the possibility that the Russell 2000's next move higher will be the length of the head to the neckline (800-770=30), we could see the index moving to the 830 (800+30=830) area before a pullback.

The second chart is of the S&P 500. You can see how the index stopped at its recent resistance today in the 1440 area. A break above this level would put the S&P 500 above 2007 highs and will likely push the index to the target zone and resistance we have talked about for months now, the 1450-1470 area.

The NASDAQ 100 is currently sitting on its 50 day moving average. We believe the next move will be to the 1825 area, before a push to 1850, and eventually above 2007 highs.

The NASDAQ Composite hit strong resistance today in the 2470 area. A break above this area should push the index to the 2510 area, before a break above 2007 highs.

With the Russell 2000 and Dow Jones Industrial Average in record territory, we feel that the other indices we follow will soon be breaking above their recent 2007 highs.