Market leadership has shown some signs of stabilizing, but Deron Wagner's nightly scans continue to provide an equal distribution of both long and short setups.

Although it is a contradiction in terms, it feels as if the market is in a range-bound uptrend.

The damage done to market leaders over the past three sessions will likely take several weeks to repair in order to create a new base for another potential rally.

Over the past two trading sessions market leaders have come under serious selling pressure. Waning leadership raises concern that a turn in the market may be close at hand.

Caution is warranted due to Wednesday's negative market action. Deron Wagner has tightened the stops on all of his positions.

Exuberance seems to be on the rise, which is always of concern during a protracted bull move.

Deron Wagner is paying particularly close attention to his short trades since the broad market has broken out to a multi-year high. Even weak ETFs are susceptible to being pulled along with a strong move in the market.

A number of signs suggest that a market reversal may be close at hand.

Due to the recent whipsaw price action and accompanying gaps, Deron Wagner is inclined to wait for new setups to form rather than chase the market.

The longer the market consolidates near the highs, the more likely the next significant move will be up.