The S&P is still trying to hold above support of its October low and remains in danger of moving into a confirmed intermediate-term downtrend. Conversely, the Nasdaq continues to hold above the lower channel of its primary uptrend.

The bullish price divergence the Nasdaq exhibited throughout the month of October continues to be quite apparent going into November.

The Nasdaq is the only one of the main stock market indexes still trading within its intermediate-term uptrending channel. All the other indexes fell below support of their lower-channel boundaries earlier in the month.

Both the S&P 500 and Dow Jones Industrials still have overhead resistance from their October highs, but the Nasdaq Composite closed at a fresh six-year high.

Following this afternoon's Fed report, the market could become pretty volatile. If the market's reaction is favorable, Deron Wagner expects the tech-related sectors to lead the way higher again.

Often, there are counter-trend moves in the broad market that precede key meetings such as Wednesday's FOMC decision on interest rates. When they occur, advanced traders can often find profitable short-term momentum trade opportunities.

Both the S&P 500 and Dow Jones Industrials moved back above their 20-day moving averages last Friday.  Although this is bullish, both indexes still have not fully absorbed the overhead supply from the broad-based October 19 sell-off.

The Dow Jones Industrial Average is now forming a "bear flag" chart pattern on its daily chart.

Schizophrenic markets, as we may be entering, require a defensive stance, as well as patience to wait for the proper trade setups to present themselves.

Unlike the Nasdaq, both the S&P and Dow have a lot of overhead resistance from their recent sell-offs, so those indexes will likely be the first to break down to new lows if another round of selling hits the market.