At this point traders really do not need higher volume to confirm down days, as the broad market averages are clearly under distribution.

Deron Wagner generally does not like to use the term "oversold" because stocks in a sharp downtrend often become even more "oversold" than most people would imagine before eventually bouncing.

Bond ETFs are showing significant strength as of late. Money flowing into bonds signals that investors are shying away from risk, which is a negative sign for stocks.

ETFs with a low correlation to the direction of the stock market are probably the best bet in range-bound or indecisive markets.

If the Nasdaq closes beneath the 2,215 level on a pickup in volume, the market will probably see a test of the June low and possibly more downside over the next few weeks.

Given the high volatility of recent months, it would not be unrealistic for stocks to break down to new lows within just a session or two.

Deron Wagner sees strong support at the lows on the weekly chart of the small-cap Russell 2000 but is still waiting for a convincing surge through the 10-week moving average before turning bullish.

It's difficult to be confident of the market's current recovery attempt when lighter than average volume levels indicate institutions primarily remain on the sidelines.

By Thursday's close, both Nasdaq and NYSE volume totals had fallen off the prior day's pace. The current rally will have a good chance of sticking as long as the major averages continue to consolidate or retreat on lighter volume.

Given yesterday's quiet session, nothing has really changed on a technical level. Deron Wagner still sees the major indices in short-term uptrends, within the context of intermediate-term downtrends.