It is possible that the indices we follow hit a bottom today. Even if the market continues to fall in the coming days, we believe that the bottom will only be a few percent lower.

On the first chart of the NASDAQ Composite you can see the lower support zone in the 2275-2300 area. You can also see the 200 day moving average which is currently sitting inside this area. We believe any additional fall will end in this area. If the NASDAQ continues higher from here, initial resistance is in the 2405-2425 area and later resistance is at 2475. A break above 2475 should push the index to 2007 highs at a minimum.

The S&P 500 found support just above the 1360 area today. If the bottom was not hit today, a fall from here should easily break through the 200 day moving average and would likely bring the index to 1330. Higher resistance is in the 1410-1420 area and eventually 1440.

If the Russell 2000 continues lower from here it will likely fall to the 740-750 area. You can see the 200 day moving average on the chart which will likely be temporarily broken if the index continues to decline. Resistance is at 790, 800, and 820.

Even if the stock market did not bottom today, we believe that we are toward the end of this decline.