The indices we follow are currently at strong resistance, but as they have bounced back so quickly from Monday's decline, it is quite possible that the pullback has ended for now. Our long-term system is far from being overbought and we believe that the current long-term trend has a lot more room to grow.

You can see from the first chart that the NASDAQ Composite is back above our blue uptrend line and is currently sitting right underneath 2007 highs. A sustained break of the 2565 area will suggest that the pullback has ended. The other possibility is that the index is forming a tiny double top formation and will fall to the 2500 area before the continuation of the long-term uptrend.

The second chart is our long-term chart of the S&P 500. You can notice that the index broke above the resistance lines we had there for months. We added two new resistance areas, one at 1500 the other at all-time highs. Currently, the index is about 2% below all-time highs. We added the 1500 resistance as it is a round number psychological resistance area. A sustained break of 1500 should push the index to the resistance at all-time highs.

The Russell 2000 is still underneath our blue uptrend line. The index is sitting right below resistance in the 830 area. A sustained break of 830 should bring the index to a test of all-time highs in the 835 area.

Today's action suggested that there is more room for the uptrend to grow before a more significant pullback. Regardless of what happens in the coming days or weeks, our view on the long-term trend will still be extremely bullish.