Today gave us the confirmation day needed to know that the recent move higher is the beginning of a new uptrend. The major market indices gained over 1.5% with the NASDAQ 100 moving higher by 1.95%. Volume was higher today signaling a day of accumulation (higher price with higher volume). This move confirms that the new uptrend has started.

The NASDAQ Composite has carved out and inverted head and shoulder formation. The neckline is just below 2700. We have used blue Fibonacci retracement lines to project the next target for the index. If the index moves higher by the height of the head and shoulder formation, we can expect a move to 2860. You can see how this is also strong resistance as it is the 2007 high.

The S&P 500 is also in an inverted head and shoulder formation and 1486 is its neckline. We have also placed blue Fibonacci retracement lines on this chart to project a mid-term target for this move. It is at 1566 and you can see how it coincides with strong resistance and 2007 highs.

The Russell 2000 has a lot more work to do. We have placed a blue downtrend line on the chart to see how the index recently broke above this resistance. The next push should be to the 800 area, followed by 820.

Today we can comfortable say that the recent correction has ended and that a new uptrend has started.