The stock market most likely formed a bottom today and will head header in the weeks and months ahead.

The NASDAQ Composite pulled back to our horizontal support area with today's low. We have used a small red line (across 2675) to show where the break was from the recent topping formation. The distance from that break to the recent high was about 50 points (2725-2675). This would suggest that the move down would be about 50 points as well, putting the NASDAQ in the 2625 area. You can see how this was right below today's low and it also lines up with our horizontal support area. In addition, the 50 day moving average is right underneath today's low. It is likely that this index has bottomed from the recent pullback.

The S&P 500 is underneath its 50 day moving average and possibly heading to 1490.  Even though it is not indicated on the chart, there is support in the 1500 area. Therefore, today could have been the low for this index.

The Russell 2000 fell to its 200 day moving average today. This aggressive fall down has been surprising, but the recent heaving selling into this important moving average would suggest that the move down is likely over.

In a stock market with such extremely low volatility, it feels that we do not make much headway before a pullback. At the moment, this is unfortunately true. Until volatility begins to increase for more than a few months before pulling back, we are going to have to sit and be patient.