If stocks manage to rally and close above yesterday's highs, we may see upside follow-through on the bullish, inverse head and shoulders patterns that have developed on numerous hourly charts.

The only thing traders and investors are likely to focus on today is the Federal Reserve Board's statement on interest rates and economic policy, which will be released at 2:15 p.m. ET.

If the major indices try to rally, but the semiconductor and banking sectors don't keep pace, there's a very good chance the rally attempt will falter.

Though the S&P and Dow are still firmly above their October lows, a breakdown to a "lower low" in the Nasdaq could cause the S&P and Dow to follow suit very rapidly.

Broken down or trend-reversing ETFs bouncing into resistance may present new short selling opportunities, though it's still too early to heavily get short.

Over the next couple days, Deron Wagner will be focusing on observing the market's signals, rather than worrying about entering new positions at current levels.

While the broad market has a decent chance of bouncing higher in the near term, the newfound strength in the U.S. dollar may keep any stock market rally attempts in check.

The major indices have broken below last week's lows, and are testing support of their 20-day EMA's

Deron Wagner writes that it's risky to step in and buy at current levels, right as the major indices test resistance of their recent highs, and with an overall bearish price to volume relationship to contend with.

Going into today, Deron Wagner believes stocks are in a very short-term "no man's land."