When volatility enters the market after an extended absence, it is often a good strategy to maintain a tight stop when trading against the broad market trend.

Deron Wagner anticipates further selling for several days, but by no means believes that the market has reversed the primary trend.

Deron Wagner thinks the market is probably reaching a reversal point, and that traders should be cautious.

Deron Wagner maintains a bullish bias but is willing to play the short side of the market when technical criteria suggests that he should do so.

Although the broad market continues to demonstrate bullish resiliency, the majority of ETFs breaking to new highs have not met Deron Wagner's strict technical criteria or risk/reward parameters.

Although Deron Wagner finds that quality long setups continue to struggle with followthrough, he maintains a long-side bias for the broad market.

Deron Wagner's overnight research revealed very few quality long or short setups. This suggests a pullback or several days of consolidation would be in order.

Although divergence continues among various ETF groups, the broad market appears to have repaired itself quite a bit over the past several trading sessions. Most short-term technical signals point to another move up for the market.

Deron Wagner's short and long positions both continue to act well, demonstrating the divergence among ETF classes.

Emerging market ETFs showed extreme weakness on Wednesday. With just a minor pullback in the market the majority of these ETFs fell 1% or more. This price action demonstrates how powerful relative weakness/strength can be.