We believe the stock market is toward the end of its recent mid-term uptrend. With significant 2007 resistance nearby, we believe that after another strong push higher the indices will have a pullback before a move above 2007 highs. In the case of the S&P 500 and Russell 2000 the indices will be moving above all-time highs.

The NASDAQ Composite is currently sitting on support. It is rather weak support, but with the uptrend already in progress, it is likely all that is needed to reverse the tiny pullback and push the index to 2007 resistance in the 2725 area. If the support ends up being too weak, the index will likely fall to the two support lines right below the current close.  Once 2725 is hit, we believe the market will pullback to the 2675 area.

The S&P 500 is in a similar situation. Th index is currently sitting on rather weak support, but it is likely strong enough to propel the index to 1540, followed by 1556. This support is especially weak (as with the NASDAQ Composite), as the index only pushed above the area briefly before a pullback to the same area. If the index does break lower from here, we can assume a move to the lower support line.

The Russell 2000 is looking much healthier, but is still far behind the other indices. We do not believe the index will get above 2007 highs before a pullback, but we believe very strongly that the index will be at all-time highs before we reach a long-term sell signal.