The first clear sign of a potential reversal of the market's downward momentum would be at least one day of strong gains on firmly higher volume in either the NYSE or Nasdaq.

Every time the S&P has touched support of its long-term uptrend line in recent years, it bounced squarely off it, eventually rallying to new highs later. Will it do the same again or will the uptrend finally end this time?

Newfound weakness in the Oil and Oil Service ETFs presents ideal entry points on the short side to Deron Wagner.

If support is found near last week's low, there would at least be some indication that a near-bottom bottom may have formed. If that happens, Deron Wagner expects to see a swift rally above last week's highs in the coming days.

Deron Wagner notes that it's premature to declare the retracements off the lows as having already run their course.

Yesterday, Deron Wagner said that a tradeable bounce for short-term traders would eventually come. Based on key support of the August, 2007 lows and yesterday's bullish intraday price action, he believes that time is now.

Deron Wagner cautions how difficult it is to profit on the long side of the market right now. Rallies in even the strongest of ETFs and stocks are extremely short-lived.

Deron Wagner still plans to initiate short positions on the weakest broad-based ETFs when they bounce into key resistance levels.

With a series of "lower highs" and "lower lows," all of the main stock market indexes are now in confirmed primary downtrends