Tuesday's strong accumulation day signals that the market may be ready to stage a meaningful advance, especially if there is another day of heavy volume accumulation.

On three separate occasions within the past three weeks, the 200-day moving average in the S&P 500 has acted like a brick wall, putting the brakes on any rally attempt.

With stocks holding at support of their prior "swing lows" last week, a subsequent move above the 20-day EMAs would not be surprising, and could generate some bullish momentum in the near-term.

After such a significant decline in the broad market over the past month and a half, it's easy to get encouraged by a 3% gain in the S&P 500. However, it's important to remember that such substantial percentage moves have not been uncommon since the recent stock market decline began.

If the major averages can rally above yesterday's high, a decent rally could develop, as the longs who sold into yesterday's ugly close have to buy back in at higher prices or risk missing a rally.

Most international ETFs have roughly moved in lockstep with the U.S. markets since the correction in the U.S. markets that began two months ago.

The weekly charts for the Dow and the S&P clearly illustrate the importance of stocks not moving any lower. If they do, major levels of price support will be breached.

Deron Wagner will be monitoring price action closely in the coming days, to determine the appropriate plan of action based on whether or not the February lows manage to hold up.

Today's continuation breakout may hold up, but Deron Wagner prefers to buy a currency ETF like UUP on a pullback to support, rather than a breakout above a range.

Given recent volatility in the broad market, combined with a vast amount of overhead resistance levels, a single instance of higher volume gains does not necessarily give the "all clear" signal to start aggressively buying and holding new positions. However, it does provide a bullish near-term sentiment for short-term traders.