After the close on Friday we wrote our subscribers an e-mail saying how we felt Monday would be an excellent buying opportunity. We can not say if we made the right call yet as the stock market has been range bound and volatile for the last three sessions. The next few days should tell us if the pullback is over.

You can see from the first chart of the NASDAQ 100 that we have been in a range for the last four weeks. If the index has a sustained break above the 2200 resistance we can assume that the uptrend has resumed. A move below 2125 support will suggest a further move down to the 2050 support. The recent high volume and volatility suggests that a huge move is coming. We believe this move will be higher.

The S&P 500 is also in a range between 1490 and 1520. A break of 1490 will push the index to 1480 and the 200 day moving average, before a possible move to the 1455 area. A move above 1520 will push the S&P 500 to 1540, followed by 1560, and eventually to all-time highs.

The Russell 2000 is in between the range of 790 and 820. A downward break of 790 will push the index to 770, while a push above 820 will lead the index to the 850 area. Minor resistances between 820 and 850 are shown on the chart.

We believe that Monday was still an incredible buying opportunity and this should be confirmed in the coming days. Breaks above the major resistance areas talked about today will confirm our prediction.