The stock market continues to climb higher and the NASDAQ Composite and S&P 500 are close to 2007 highs. The Russell 2000 continues to lag the other indices. With 2007 resistance approaching, it is likely we will see a pullback soon.

The NASDAQ Composite is about 1% below 2007 highs. We believe the index will hit the 2725 resistance area before a pullback begins. If this is true, it likely that the NASDAQ will fall to the 2625-2635 area. If the index breaks above 2725 before a pullback, most likely it will not fall this far. As there are over 270 points in the height of the recent formation, we could easily forecast a 10% move above the 2725 area in the NASDAQ Composite before this long-term uptrend is done.

The S&P 500 is currently headed to the 1540 area, followed by a likely move to 2007 highs. If the pullback begins in the next day or two, we could foresee the possibility of the index falling to the 1480 area. If the S&P 500 moves to 2007 highs before a pullback, we believe the index will only fall to the 1515 area, just under today's low.

The Russell 2000 continues to trail the other indices.  A pullback here could push the index to the 790 area, while a break of 820 should bring the Russell 2000 to the 840-850 area.

Regardless of whether the stock market pulls back in the coming days, it is clear that the long-term uptrend continues to be up.