Deron Wagner is encouraged by last Friday's accumulation day, which should set a positive tone to the start of trading in this holiday-shortened week.

With most market participants sitting on the sidelines or on vacation right now, Deron Wagner does not anticipate any substantial price action to occur in the broad market until at least the passing of the Labor Day holiday.

Where is Deron Wagner targeting iPath Grains ETN (JJG) for an entry.

Since its swift, parabolic move from mid-June to mid-July, iPath Grains ETN (JJG) has been forming a nice base of consolidation.

Deron Wagner likes how the price action of GLD has perfectly held support of the 20-period exponential moving average for the past three months.

Although yesterday's losses in the broad market were substantial, the benchmark S&P 500 Index remains above near-term support of its 20-day exponential moving average.

Deron Wagner is watching the iShares Nasdaq Biotechnology ETF (IBB).

Although yesterday's distribution day and bearish engulfing pattern in the broad market may have been disappointing for the bulls, keep the correction in perspective. The market was overdue for at least a near-term pullback, and it is normal for an uptrending market to experience an occasional bout of heavier volume selling in even the steadiest of bull markets.

The strongest stocks in the market are already breaking out to new 52-week highs and holding, which increases the odds of the major indices eventually following suit.

Going into today's session, keep a close eye on the performance of $QQQ, which tracks the performance of the Nasdaq 100 Index.