Today, Deron Wagner resumes his analysis of potential trade setups of ETFs with relative strength that he's stalking for possible buy entry on a pullback.

Going into this week, Deron Wagner will be looking for strong ETFs, such as SMH, that pull back to support of their 10-day moving averages, and other similar areas of support.

If the negative after-hours tone carries over into Friday's session, stocks could easily surrender all of the previous day's gains.

A look at the weekly chart for GLD shows the formation of a "symmetrical triangle" that has been developing, and could indicate an eventual up-side breakout above the upper channel resistance of the triangle.

Now that the stock market appears to be entering a new phase of bullishness, Deron Wagner takes an updated look at the longer-term weekly charts of the major indices.

Going into today, Deron Wagner is still stalking various tech-related ETFs for pullback buy entries.

Because of choppy daily chart patterns in several of the major indices, Deron Wagner is primarily interested in buying ETFs that pull back to significant support levels after they've broken out, rather than buying the initial breakouts.

For now, the short-term trends in the S&P and Dow are bullish, but the intermediate-term trends are neutral.

Buying on a retracement, or at least after a few days of price consolidation, is a good strategy for entering bullish breakouts that initially fail to provide ideal buying opportunities because of large opening gaps.

Those traders who do not feel comfortable buying breakouts could always take a half position on the breakout and add the remaining half position on the first pullback to reduce risk.