Deron Wagner is having a difficult time finding trade setups with a good reward/risk ratio and high probability of success right now.

Deron Wagner's updated assessment of industry sectors in the domestic markets indicates that the various biotech ETFs are still showing the most relative strength and bullish chart patterns.

Deron Wagner warns traders not to lose sight of the fact that the main stock market indexes remain well entrenched in long-term downtrends. Until price action proves otherwise, he is still assuming current strength in the broad market is nothing more than a counter-trend bounce of a dominant downtrend.

Deron Wagner has not yet seen any indication that last week's rally attempt off the lows was anything more than a very short-term, counter-trend bounce.

The major indices wrapped up a positive week with a quiet session of trading last Friday. Taking a healthy rest from two straight days of solid gains, stocks oscillated in a tight, sideways range throughout the entire session.

If the major indices manage to brush off last night's negative earnings reports and close near unchanged levels today, it will be another sign that overall sentiment has flipped to the bullish side, at least in the near-term.

Deron Wagner writes that there was enough broad-based momentum on Wednesday to carry stocks higher in the near-term, over the next week or so, but there is a ton of overhead supply the stock market must contend with in order to move much higher in the intermediate-term.

The possibility that the inversely correlated UltraShort Financials ProShares (SKF) is forming a short to intermediate-term top could mean the financial stocks may finally be bottoming.

After getting pummeled over the past six weeks, where will the S&P 500 eventually find support? Though the daily chart looks rather ominous, the long-term monthly chart may shed some light on the situation.

The stock market has not yet given us any reason to be overly positive on the near-term direction of stocks.