Aside from the relative strength in metals, there isn't much for Deron Wagner to get excited about, as there are very few reliable patterns to exploit for gains.

Once the S&P 500 tests the 900 area and pulls back, Deron Wagner will see how the price and volume action holds up, providing valuable clues as to the direction of the next intermediate-term swing in the market.

The recent setback in the market may have been the washout that is necessary to kickstart a strong rally. A big volume breakout to the upside on a Fed day would probably catch the majority of investors off guard.

While the market continues to frustrate with wild intraday swings that fail to follow through, Deron Wagner has been lying low and scanning for ETFs that have a low correlation to broad market indices.

Though the tight-ranged action in the broad market tells us to prepare for a move out in either direction, Deron Wagner is leaning towards a move to the upside.

Deron Wagner is avoiding losses by sticking to his plan of doing nothing -- at least until the market confirms the direction of its next movement.

If the major indices attempt to move higher in the short-term, there is an abundance of overhead supply to contend with, as well as resistance of their 20 and 50-day moving averages.

In both the short and intermediate-term, Deron Wagner has a neutral view, as there are technical factors that could cause stocks to swing in either direction.

So far this year, the Nasdaq Composite has shown the most relative strength of the major indices that comprise the broad market.

Deron Wagner can't see this market successfully defending the November lows with the financial sector breaking down once again.