The broad market saw its seventh distribution day in the past four weeks on Friday. A followthrough to the downside on Monday could be the start of a difficult week for the market.

Today is options expirations Friday. It won't be surprising to see whipsaw price action as options contracts settle.

The longer that leadership stocks and market internals continue to flounder, the more likely it becomes that the market will see a more pronounced correction. Deron Wagner would not be surprised to see a gap up and an intraday reversal today.

f the broad market can't find the strength to hold support at the current levels and rally firmly back above the above the 50-day and/or 20-day moving averages, a sharp round of selling could very well occur.

With yesterday's sell-off, the health of the market is now in question. Internals are deteriorating.

For the most part, market leaders either got pounded or closed near session lows on Friday. Fading leadership generally does not bode well for the broad market.

The market has moved to new highs while many market leaders have failed to do the same. Further, the rally has occurred in the absence of broad-based participation. These are often early signs that the market may be weakening.

The market appears locked in a discussion between bears and bulls with the outcome yet to be determined.

An abundance of quality long setups has been noticeably absent from the nightly scans. This may in large part be due to sector rotation, but it is also common during the final stages of an extended rally.

Given Monday's volume contraction, today could very well decide the next significant move in the market.