One of the problems with yesterday's rally was the overall light volume. Deron Wagner continues to see a bearish volume pattern over the next few weeks, as heavy volume-down days are followed by lighter volume-up days.

Big volume is coming into the market at the highs, a clear warning sign that the strong uptrend may soon reverse.

Deron Wagner is not in a hurry to jump back into the market until the major indices make a decisive move out of their choppy trading ranges of the past few weeks.

Previously acting as support, the 20-day moving average has now become a short-term resistance level to watch in the S&P.

Right now, we may be entering into one of those more unusual periods in which gold and the U.S. dollar simultaneously show strength. This might be regarded as an overall flight to safety, sparked by yesterday's massive decline in the equities markets.

It would not surprise Deron Wagner if the Nasdaq recovered back to its 2007 high in the intermediate term.

In the event of a correction in the coming week, Deron Wagner will look for stocks to hold their "swing low" support levels of April 16, many of which converge with the 20-day exponential moving averages of the major indices.

Yesterday's bullish intraday reversal enabled the Nasdaq Composite, Russell 2000, and S&P Midcap 400 indices to close at new 52-week highs. However, the S&P 500 still must contend with resistance of its recent highs. The same is true of the Dow.

Technical indications hint of an impending pullback in the broad market, BUT Deron Wagner has not yet seen sufficient indication of a clear reversal of market sentiment.

Overnight volatility and indecision is commonplace during earnings season. When combined with the current situation of investors and traders still trying to assess the true effect of last Friday's Goldman Sachs news, the environment seems pretty ripe for continued high volatility.