We believe the stock market is in the middle of a short-term pullback. By next week the indices should be continuing the recent uptrend that has been developing and any weakness in the coming days should not hurt our long-term bullish view.

The NASDAQ Composite is likely headed to the 2600 area. Not only does the rising 200 day moving average linger here, but there is also strong horizontal support as well. If the index fills the gap between November 27 and November 28 we could see a further fall to 2570-2580. We do not believe that 2550 will be taken out.

The S&P 500 found resistance at our line of 1520 and is currently sitting right below our 1488 support/resistance line. We believe that the index is headed to 1450 before a resumption of the dominant long-term uptrend.

The Russell 2000 is likely headed to 750. Yesterday the index was stopped at its falling 50 day moving average. Continued weakness beyond 750 could push the index to a retest of lows at 740.

Even though the stock market has been slow to rally, we still believe that the indices have bottomed and that the long-term trend is long. The market did become overbought in the short-term due to the recent rise, but it is quickly becoming oversold again. By next week the indices should be moving up again.