All of the momentum indicators that Deron Wagner follows place the broad market squarely in an oversold status. The selloff could continue for several days.

Yesterday's price action provided a good example of why Deron Wagner doesn't trade news. The news of a debt deal wasn't enough to carry the market to higher ground.

In order to move higher the market likely needs at least several weeks of sideways price action to repair some of the recent damage.

More and more stocks are either testing or losing support of their 200-day moving averages. The failure of the market to hold onto solid gains following Wednesday's carnage does not bode well for Friday's prospects.

Leadership stocks and ETFs have begun showing relative weakness over the past two sessions. When long-term leaders become laggards it is not usually a good sign for the broad market.

The market continues to struggle to find direction. Because of the choppy price action, daily scans are revealing few quality trading opportunities on either side of the market.

Markets don't like uncertainty, and until the budget, debt and deficit matters are resolved, traders can expect to see the market mired in confusion.

The market could be in for a rough day on Monday.

The broad market is now again within striking distance of its two-year high.

Leadership is still present in the market, so Deron Wagner's current bias continues to be bullish.