Since the S&P 500 and Dow Jones Industrials have now fallen below support of their late December "swing lows," the intermediate-term bias of these indices has shifted from cautiously bullish to neutral.

We all know earnings reports are generally not expected to be impressive, but this is could be a good thing for the market if investors' mental expectations are already low enough.  With earnings reports, it's always the stock market's subsequent reaction that matters, not the actual results.

With the major indices now below their 50-day MAs, but still above their "swing lows" from December, stocks are essentially in "no man's land."

Although the overall bias remains cautiously bullish, not too many industry sectors are taking leadership of the markets.

With most of the major indices showing strength into the close and finishing at their intraday highs, the broad market is now positioned to resume its intermediate-term uptrend off the November lows.

It's quite possible the stock market will eventually fall to new lows sometime in 2009.  However, considering the extent of last year's losses, the current intermediate-term rally could easily continue much higher before the bears resume control again.

Though Deron Wagner doesn't have enough confirmation to declare the end of the market's seven-week rally, he thinks a substantial pullback to at least the 50-day moving average is quite realistic.

In the very short-term, another day or two of consolidation or small losses on light volume would actually be healthy for the overall market.

After three straight days of solid gains, the S&P 500 could easily pull back in the coming days.

Long-term broad market bias remains bearish until stocks reclaim their 200-day moving averages, which are well above current price levels.