2007-3-20 2007-3-20 Monday's fall was a relief. The stock market had been becoming closer to long-term overbought the last two weeks and Monday's decline has allowed for powerful gains in the weeks ahead (it doesn't take too much to relax a market that is near overbought in the long-term timeframe). Even though this may be the final leg in the uptrend before a substantial fall, we believe that the gains in the weeks ahead will be large.Yesterday the low of the NASDAQ Composite was just above the recent breakout point. We would have preferred for the index to hit its support line before rebounding, but it is still quite possible that the pullback is over and that the NASDAQ is headed to new 2006 highs. The other way to look at the most recent two day advance is to think of Monday's pullback as the beginning of a small correction, the last two days being a corrective move higher, and the index falling below Monday's low in the coming days to end the correction near the 2350 area (second support line from the top). 106792 text/html http://www.nasdaqwizard.com/midweek112906.html 1.0 EN index,follow Monday's fall was a relief. The stock market had been becoming closer to long-term overbought the last two weeks and Monday's decline has allowed for powerful gains in the weeks ahead (it doesn't take too much to relax a market that is near overbought in the long-term timeframe). Even though this may be the final leg in the uptrend before a substantial fall, we believe that the gains in the weeks ahead will be large. text