The stock market is likely in the middle of a short-term pullback. The recent advance has confirmed the August low as the bottom of this correction in many indices and any pullback from here should be short lived.

The NASDAQ Composite broke above the neckline of its head and shoulder pattern just briefly last week. We are likely in a pullback that will end above the 2535 support level. There is enough support between 2535 and 2575 for the index to have a stopping point between this area. A break of the recent highs should push the index to 2725 before a more meaningful pullback.

We believe that the S&P 500 has also started a pullback. The 1454 area is the next level of support. Subsequent support areas are shown on the chart. A break of Friday's high should push the index to 1540.

Just like with the NASDAQ 100, the Russell 2000 briefly broke above strong resistance last week before reversing. The next support level is 778. As long as the index stays above the two support lines annotated on the chart, we can assume that the correction is over.

Any short-term pullback in the coming days will not hurt our view that the long-term trend is higher. If the indices break above Friday's high, we have another move higher ahead of us before a pullback.