Yesterday, the Nasdaq Composite became the first of the major indices to finally break out above its six-week-long sideways range. This tells Deron Wagner bets on the long side of the market should continue to include tech positions, though a few other sectors such as energy and agriculture are also perking up.

Several ETFs in the energy sector have formed "double bottom" or "undercuts" of their prior lows, and are now setting up to break out above multi-month downtrend lines.

If the current pre-market weakness persists into the open, most of the major indices will open below their lows of the past three days, and in in the vicinity of their 20-day exponential moving averages.

Today the Fed will announce the government's latest stance on interest rates and economic policy. While virtually nobody is expecting a change in the Fed Funds Rate today, traders will be closely focused on the language regarding future economic policy.

The S&P has merely drifted back up to test resistance of the upper channel of its recent consolidation, marginally edging out its November 25 closing high.

The small-cap Russell 2000 Index is now poised to break out above the high of its recent consolidation, which would enable the index to quickly catch up to the rest of the major indices.

Deron Wagner looks at a few charts that may offer a buy entry from a longer-term consolidation.

Over the past two days we have seen relative strength in the Nasdaq Composite, especially in Nasdaq 100 ETF (QQQQ), as evidenced by the 15-minute chart.

The S&P is once again approaching the lower channel support of its recent range.

The longer this market chops around, the more explosive the move out in either direction will be.