Deron Wagner writes that only the near-term patterns of the major indices are bullish.

If the after-hours weakness that followed yesterday's strength wasn't enough fun, this morning's news that Microsoft intends to buy Yahoo! makes things even more interesting.

Deron Wagner notes that the major indices remain in firmly established intermediate and long-term downtrends.

The initial knee-jerk reaction to Fed announcements rarely stick, as the real reaction is generally not seen until several days later.

With support of a higher low having been established, we could expect the major indices to test resistance of their January 25 highs within the next several days.

Deron Wagner believes last Friday's pullback was a short-term shakeout, and the major indices will attempt to rally above last week's highs in the coming days.

Despite the bounce off the lows, the major indices remain in steep overall downtrends.

Deron Wagner writes that the combination of yesterday's "capitulation" and "double bottom" formation means that stocks are likely to continue higher in the short to intermediate-term.

Deron Wagner thinks stocks could easily stabilize and move higher in the short- to intermediate-term, but the long-term trend remains firmly bearish.

Global selling pressure has spilled over to the U.S. futures markets and the S&P, Nasdaq, and Dow futures are each positioned to open approximately five percent lower than last Friday's closing prices