Deron Wagner is still looking for a pullback to the 50-day moving average in the major indices, which should provide plenty of high quality setups off support.

With both the S&P and Dow still firmly below their February highs, and volume patterns of the past three days favoring the bearish side, there's a greater possibility the S&P and Dow will weigh on the Nasdaq.

Although Deron Wagner still anticipates the major indices to retrace down to their 50-day moving averages in the short-term, it would not be totally shocking if stocks attempted to break out above their recent highs first.

Negative and positive earnings surprises from market-moving companies can exacerbate indecision and whippy trading conditions in the markets.

Even though the stock market remains resilient, odds still favor a significant correction from the recent highs.

Deron Wagner continues to play it relatively conservatively on the long side of the market.

There is always the possibility the S&P 500 will ignore resistance of its late January/early February highs, and continue higher for another week. But strictly from a technical point of view, a price retracement or correction by time (consolidation) is likely.

Buying pullbacks in steadily uptrending ETFs is a solid approach, because the risk/reward of such entries is usually very positive.

The S&P 500 has been basically range bound over the past three sessions. Deron Wagner would welcome some sort of retracement in the market to provide quality pullback opportunities, as long as the volume pattern remained bullish (little to no distribution).

If stocks continue selling off in the short-term, look for that 789 area in the S&P 500 to be a key level of price support.