The next fall in the stock market should bring the indices to a total fall from the top of about 10%-15%. This is inline with the average correction in a long-term uptrend. We believe that the current correction is almost over.

Our lowest target for the NASDAQ Composite right now is the 2400 area. We used Fibonacci retracements on the chart to show that if the recent consolidation was the halfway point of the correction, the fall would end around the 2433 area. With the recent break to the downside, 2400 is more likely. We do not see a fall below 2400 at this point.

The S&P 500 has also broken below its recent consolidation. We used Fibonacci retracements here as well to show the possible end of this move. 1390 would be the number if we use the recent consolidation as the midpoint of this fall, but the next large support area is 1380. Just like with the NASDAQ Composite, with the recent break the lower support line is the more likely candidate for the end of this move.

The Russell 2000 has a different formation. We believe the index is in the process of forming a double bottom formation. Therefore, the next large support area is 740. It is possible that this area will be broken in the coming days, but a quick rebound is expected. Once the climb higher begins, we believe that 800 will be the first stopping point.

Nobody enjoys sitting through corrections, but this move down is just about over. Most likely the uptrend will resume by the beginning of next week.