The stock market has clearly resumed its uptrend. The NASDAQ Composite is breaking above 2007 highs, the Russell 2000 is moving above all-time highs, and the S&P 500 has just ran into resistance at all-time highs. Our long-term system is still far from being overbought, suggesting that there is much more room to grow before a sell signal is triggered.

Last week the NASDAQ Composite pulled back to its 2535 breakout point, found support, and has since rallied into new 2007 territory. We have drawn a blue uptrend line to show the current incline of the trend. A cup formation has been formed between 2520 and 2580. This would suggest a possible 60 point move  (2580-2520) above the breakout point in the short term. This would bring the index to 2640, before a stronger pullback.

The S&P 500 is hitting resistance at all-time highs. As we are technicians, we are concerned with the index having a strong break above all-time highs, not the all-time highest close. The highest close is irrelevant to us. With our system being far from overbought, we see the S&P 500 much above all-time highs before a long-term downtrend emerges.

The Russell 2000 found support at its 50 day moving average last week and carved out a double bottom formation. As the height of the formation is from 810 to 835 (25 points) we can assume that the next move in the short-term will end in the 860 area (835+25).

The market has begun another uptrend and even if this is the last leg higher during this long-term buy signal (which we are not suggesting will be the case), we still have a great amount of room to grow.