The Nasdaq 100 Index has been drifting lower for the past six days.  Will we see a bounce?

Is the market in a pullback or a new intermediate-term downtrend?

It may be difficult for the Nasdaq to find traction if AAPL is unable to hold the low of the October 9 reversal candle.

Deron Wagner thinks his best plan of action right now is simply to focus on managing his existing open positions, rather than taking on additional risk exposure.

With the main stock market indexes still trading above their 50-day moving averages, and relatively near their 52-week highs, it is way too early and risky to become aggressive on the short side of the market.

Deron Wagner has five good reasons why the overall stock market may soon be setting up for a substantial downward price correction.

Any new ETF trade entries will be with reduced position size in order to minimize risk. Deron Wagner is also leaning towards ETF's with a low correlation to the direction of the broad market, such as international, currency, commodity, and fixed income ETF's.

Deron Wagner is currently maintaining enough exposure on the long side of the broad market to realize a substantial gain if the main stock market indexes move higher.

Many traders, particularly newer ones, make the mistake of getting greedy, or letting their ego rule their decision making process, which often results in a highly profitable trade turning into a moderately profitable trade or worse.

Deron Wagner can't rule out a pullback to the 50-day moving average on the S&P 500 or Nasdaq Composite.