If stocks move above last week's highs and hold for at least the first thirty minutes, it will set a rather bullish tone for the broad market.

Although short-term bounces can certainly be played along the way, the market has not yet given us any clear signs that the worst is behind us.

The S&P, Nasdaq, and Dow are now marginally above their 20-day moving averages, but still below key resistance of their February 1 highs.

Because bullish momentum was significantly lacking during yesterday's breakout above the recent trading ranges, Deron Wagner feels there is a very strong possibility the major indices will succumb to the pressure of the current bear market and slide to new lows in the coming days.

Commodities and other ETFs with no correlation to the stock market continue to offer to Deron Wagner the lowest risk investment on the long side of the market right now.

If the major indices manage to hold at support of their February 7 lows for the next several days, we could see another near-term bullish move back towards resistance of the recent highs.

Yesterday's closing gains may seem mild in comparison with recent losses. But there were encouraging signs, including higher volume that indicated institutional demand, and relative strength among many former market-leading stocks.

Tuesday's break of the hourly uptrend lines put additional pressure on the major indices Wednesday, causing stocks to retrace more of their gains from the near-term bounce off the January 23 lows.

Deron Wagner writes that investing in ETFs with a low correlation to the domestic stock market is one way to diversify and reduce a trader's overall risk exposure.

With most chart patterns again looking more bearish than bullish, Deron Wagner is no longer looking to buy new ETFs.