The iPath S&P 500 VIX Mid-term Futures (VXZ), correlated to the CBOE Volatility Index (the "fear index"), which frequently moves in the opposite direction of the broad market, has come into major support of the lower channel of its multi-month "pennant" formation.

For the third time in as many months, SPY has reclaimed its 200-day MA. This could lead to higher than usual volatility, along with a tug-of-war, as the bulls and bears battle for dominance at this pivotal resistance level in the broad market.

Deron Wagner discusses three ETFs that are showing relative strength in the market.

One positive traders can take from yesterday's selling action is that the major averages did avoid a bearish distribution day.

Choppy trading range remains the dominant theme in the markets.

Along with the increased appetite for exposure to equities in emerging markets, institutions have also been hot on emerging markets debt exposure.

After last week's three-day rally, the S&P 500 SPDR (SPY) may be setting up for a very near-term short selling opportunity.

With today's session preceding a three-day, holiday weekend, Deron Wagner doesn't expect a lot of action in the market today.

The big question is whether Wednesday's bounce will develop into a substantial, new uptrend, or if the bullish momentum will swiftly fade, as has been the case with other rally attempts in recent months.

Now is a good time to start building a fresh watchlist of ETFs with relative strength, in order to be prepared for fresh buying opportunities if they arise.