Tuesday was the third time within the past month the major indices have gained more than 3% in a single day. The first two times were quickly met by selling pressure, but Deron Wagner thinks this time may be different for several reasons.

Deron Wagner writes that broad market now has a chance to resume its short-term uptrend that began in mid-March.

A rally above last Friday's highs would put the main stock market indexes back above their 50-day moving averages. That could subsequently give the bulls a good reason to jump back in the market.

Deron Wagner wants to keep an eye on the Market Vectors Steel (SLX) today, as it positioned for a bullish move in the near-term.

With the S&P, Nasdaq, and Dow all holding at their 50-day MAs, as well as new support of their prior intermediate-term downtrend lines, Deron Wagner writes that the near-term bias remains bullish.

Many ETFs have started to break out above resistance of multi-month downtrend lines, providing Deron Wagner with quick, counter-trend momentum trading opportunities.

Deron Wagner sees the long-term downtrends remaining intact, but the short- and intermediate-term trends are turning up.

The broad market remains firmly in a downtrend over the long-term, but tradable, counter-trend retracements often lead to sizable gains in a bear market.

Deron Wagner remains cautiously bullish on the near-term direction of the broad market, just as long as yesterday's lows in the S&P, Nasdaq, and Dow are not violated by a significant amount.

Because of the Nasdaq's closing price above the 20-day EMA for the first time in nearly three months, as well as the Dow's close above its 50-day MA, Deron Wagner is now cautiously bullish on the near-term direction of the broad market.