Based on yesterday's bearish reversal in the financials, the chance of failed breakouts in the major indices now looks like a realistic possibility.

One industry sector ETF Deron Wagner is stalking for potential buy entry is Oil Service HOLDR (OIH).

Even if the broad market manages to rally back to test its prior highs, Deron Wagner would now be on alert for failed breakouts.

Deron Wagner notes that only if the main stock market indexes exceed their 61.8% Fibonacci retracements on a closing basis would there be a good chance of stocks rallying all the way back to their prior highs in the near-term.

If stocks are to move back to their recent highs without correcting further, it would require a lot of volume to absorb the newly created overhead supply left in the wake of the selling.

After a few more days of trading, the charts will give Deron Wagner a much better idea of whether or not the current pullback off the highs is likely to be short-lived.

Deron Wagner writes that it's still a bit too early to consider the short side of the market for anything more than a very short-term trade.

Deron Wagner continues to focus on ETFs within select industry sectors, and even a few international ETFs, which have much better trade setups, with more positive reward-risk ratios, than the broad-based ETFs.

From day-to-day, and even intraday, stocks have been see-sawing between positive and negative territory. In case the current sideways range becomes prolonged, there are two tips to help manage such price action.

If the major indices start to build on their losses of the past two days, there may finally be a decent price correction in the broad market.