Anything bought right now should be entered with a more aggressive profit-taking stance, as well as tight protective stops, at least until the major indices confirm the developing rally off the lows will remain firm.

A lower volatility session to help establish price support in the stock market would be most welcome today.

The main stock market indexes are now faced with testing support of their recent lows. If the market still has a chance to form a bottom, these prior lows must hold. However, an intraday dip below the lows would not be shocking.

Deron Wagner writes that it's actually positive the stock market pulled back a bit. If the market tries to recover too much of its losses in such a short period of time, the gains are less likely to remain intact.

One day of gains, no matter how monstrous, does not automatically call a bear market bottom.

In today's pre-market, the S&P and Nasdaq futures are presently indicating a higher open by 4% to 5%.

When the broad market eventually bounces, Deron Wagner expects the relatively strong Nasdaq 100 Index to outperform the rest of the main stock market indexes, but it's become a guessing game as to when that will happen.

In the pre-market, both the S&P 500 and Nasdaq 100 futures markets are indicating a significantly higher open for the stock market.

Deron Wagner admits he could have played the short side of the market more; however, the reward/risk ratio of getting short at such depressed levels is now not very good.

The daily chart patterns of the major indices are so bearish that it's difficult to predict just how much, if at all, stocks will follow through to the upside.