Deron Wagner explains why traders may want to check out some of the fixed-income (bond) ETFs.

Since financials showed relative weakness by failing to participate in yesterday's rally, the sector could be one of the first to fall if the broad market shows any weakness, or even mere consolidation, over the next week.

Deron Wagner has no choice but to conclude the bulls are still in control for both the short and intermediate term.

Although stocks lost approximately 2% yesterday, all the indexes held above their 50-day moving averages. As long as the 50-day MAs hold up, and there's no session of higher volume selling, both the short and intermediate-term trends remain "up."

The main stock market indexes would have to rally much higher to even have a shot at reversing the long-term downtrends, which have been in effect for nearly a year and a half.

If and when the major indices move above last week's highs, they will have reversed their intermediate-term downtrends by breaking out above their multi-month downtrend lines. Such a breakout would also enable each index to move back above its 50-day moving average, a closely-watched indicator of intermediate-term trend direction.

Yesterday's pullback, triggered by resistance of the 50-day MA on the S&P 500, may have set the market up for a short-term correction from its recent lows.

So far, the major indices have not exhibited any signs of a pullback from their recent gains. Nevertheless, the reward-risk ratio of entering new positions in the broad-based ETFs at current levels is not very favorable.

With the Nasdaq 100 back above its 50-day moving average, Ultra QQQ ProShares (QLD) is now looking more promising for the intermediate-term, as well as short-term.

If the major indices register another day of losses today, but subsequently rally back to their preceding highs later in the week, better buy setups should start to arise.