The S&P 500, Nasdaq, and Dow will soon be testing resistance of their January 2010 highs. As they do, traders should be prepared for a bit of turbulence and volatility.

There is a risk that the pre-market employment data could spark a swift drop in the broad market today, but the overall technical picture still slightly favors the bulls.

In the current environment, Deron Wagner prefers buying ETFs that are reversing their downtrends after a pullback.

In order to have the best chance for profitability in the current, short-term rally, it's important to focus on specific sectors and industries showing the most relative strength to the overall stock market.

Deron Wagner discusses how a disciplined system of controlled risk contibutes to a trader's long-term profitability.

Although the Nasdaq Composite has unconvincingly moved back above its 50-day moving average, the S&P 500 and Dow Jones Industrial Average remain stuck below their 50-day MAs.

Even though yesterday's price and volume patterns were bullish, the major indices remain between their 20 and 50-day moving averages going into today's session. As such, traders must be prepared for whippy or indecisive price action in today's session.

With the 20 and 50-day moving averages tightly enclosing the prices of the major indices, traders should be prepared for high volatility in the coming days.

Stocks made a statement with yesterday's high volume break of support, but the degree of downside follow-through remains to be seen.

The broad market has basically been directionless for the past two days, and there has been a relative equilibrium of buying and selling pressure. This occurs as most of the major indices are still trying to convincingly break out above both their 61.8% Fibonacci retracement levels and 50-day moving averages.