We believe that the stock market has ended its recent short-term pullback and we are currently beginning a new leg of the mid-term uptrend that started in the middle of March. The downside correction that started at the end of February has most likely ended.

Today, the NASDAQ Composite closed at the 2460 resistance level that was the top of the incline two weeks ago. We believe the index is headed for the 2470-2475 area, before a push to the 2490-2495 area. At this point the index will have filled the gap from the powerful open lower at the end of February. We would expect a small pullback at that resistance area, before a push to 2007 highs.

The S&P 500 ran into our resistance line the past few days and has not broken above it yet. Even though there is minor resistance in the 1450 area, we believe that the index is currently headed to 2007 highs at 1460. Due to the S&P 500 hitting the resistance area the last two days and not breaking above it, it is possible that we will see a short-term pullback here. Any weakness should stay above the 50 day moving average at a minimum. The 1430 area will likely stop the fall before the index can get to the moving average.

 We believe that the Russell 2000 is headed to the resistance in the 818 area. This is where the index opened on the powerful down day at the end of February. After hitting this area, a short-term pullback would be expected. The 830 area would be our next target.

The stock market has likely continued its mid-term uptrend from the middle of March. At this point, we can almost say for certain that the recent correction (which started at the end of February) is over.