Based on the impressive and swift nature of Wednesday's reversal, Deron Wagner wouldn't be surprised to see some follow-through to the upside. Nonetheless, the market has created serious overhead over the past several weeks and any follow-through could be short lived.

The fact that the 20-day EMA has crossed below the 50-day MA on the Nasdaq, S&P 500 and the DJIA, suggests another move lower.

The broad market continues to show signs of weakness.  It appears that the market is headed for another leg down.

The Nasdaq 100 actually closed down 0.2 percent on Friday.  This provides further indication the market may be weakening.

Today is a quadruple witching options expiration day. Typically this means there is a greater likelihood of increased volume and volatility.

Due to the recent sharp increase in volatility, it is a good time to evaluate the health of the broad market.

The market demonstrated signs of resiliency on Tuesday but it would be a stretch to consider the overall action as healthy for stocks.

Based on the sharp selloff in the Asian markets overnight, Deron Wagner anticipates similar action in the US markets today.

The unfortunate circumstances in Japan could be what precipitates an extended correction in the broad market.

The ProShares UltraShort QQQ ETF (QID) made a powerful reversal move yesterday and closed above its 50-day MA for the first time since August 2010.  A move above yesterday's high of $54.28 may provide a long entry in QID.