In addition to the major indices testing pivotal support levels, it's notable that leadership stocks have not shown much follow-through over the past several weeks.

We now have four distribution days in the past twenty sessions on the Nasdaq and six on the S&P. The market is now close to providing us with a sell signal.

The market continues to show resiliency, as we once again averted a distribution day. Deron Wagner would not be surprised if the market were to spend several more days consolidating at the current level before attempting another move higher.

The S&P 500 attempted to break through resistance at 1,420 yesterday, but it fell just short as it closed just below this key mark. Short-term support levels on the S&P 500 include 1,392 and 1,387. If the S&P manages to clear the 1,420 level, its next key resistance is near 1,440.

The market has struggled recently, so Deron Wagner would like to see a big accumulation day early this week as confirmation that bulls are still firmly in control of the market.

Buyers stepped back into the market yesterday preventing what could have been a disaster for market bulls. Another distribution day would have put the market under considerable pressure.

Although yesterday was technically a distribution day, the recovery in prices late in the session helped to mitigate much of the day's damage.

Over the past three weeks, the iShares MSCI South Korea Index (EWY) has been setting a sequence of higher lows, as it has tested support near its 50-day MA on two occasions.

The Russell 2000 finally broke to a new 52-week high, which bodes well for market bulls.

The Direxion Daily Semiconductor 3x Bull ETF (SOXL) formed its second consecutive reversal candle as it held support of the 10-day moving average.