Even if the S&P breaks below last week's lows, the good news for bulls is that much more significant technical price support will be found near the rising 50-day moving average.

The market uptrend remains intact with only a few days of distribution in the major averages.

The selling in the broad market over the past two days has pressured individual stocks, but the effect on ETF positions has been more muted.

For now, it's too early to tell whether or not bearish momentum will build on Tuesday's decline.

The increasing relative strength we are starting to see in emerging markets ETF's is positive not only for our open positions, but also as a sign for the overall health of the broad market

As a long-term indicator of trend, the 200-day moving average usually acts as a brick wall. If an ETF or stock is trying to move above that resistance level, it typically requires at least several attempts.

Thursday's price action in EEM now makes the reward-to-risk ratio even more favorable for a buy entry because the ETF gapped lower on the open, then reversed to close at its intraday high. This resulted in the formation of a bullish reversal candlestick.

Most of the agricultural commodity ETFs bounced higher yesterday, forming potential buy entry points into these ETFs with a positive reward to risk ratio.

With individual stocks in healthy markets, Deron Wagner primarily focuses on buying breakouts of consolidation in stocks trading near their highs and buying short-term pullbacks to technical levels of price support.

Deron Wagner is monitoring the Regional Banks SPDR (KRE) for a possible swing trade entry.