Most likely the stock market bottomed on Monday and yesterday marked the beginning of the new uptrend. I strongly believe that the correction is over.

In addition to talking about the NASDAQ Composite, S&P 500, and Russell 2000 today, we are also going to comment on the two international ETFs that we mention on the long-term works page.

On Monday, the NASDAQ Composite closed right above its 200 day moving average. The two down days leading into this fall had extremely high volume. This is typical right before a reversal. Today's pullback was expected, as the index climbed 90 points yesterday. The fall was right into strong support in the 2630-2640 area. We will likely not see a decline below this support level. A break of 2700 should push the index to the 2820-2830 area, indicated on the chart.

The S&P 500 fell just a little below our target from last week before it climbed higher. The index did find support on its 61.8% Fibonacci retracement. Support is in the 1454 area. A break of 1490 should send  it to 1540.

The Russell 2000 fell a little below the diagonal red line as well. A break of 790 should push the index to at least its 200 day moving average in the 810 area. A move to 820 is possible as well, before a pullback.

EEM has corrected almost 15% from its recent top. This alone leads us to believe that the pullback in the ETF is over. In addition, the 145 area was right above strong support. A break of 160 should send EEM to the 175 area.

IEV could still fall to the 116 area. The support is rather weak at Monday's low. If the ETF can stay above the 118.60 support line it is likely headed to 122 next. A break of 122 should push it to the 128 area.

We just sat through another correction within the long-term uptrend. The bottom is likely in and the new leg has started.