Deron Wagner writes that if leading stocks remain healthy, there's a good chance the indices will resume their two-week old uptrends by breaking out to fresh near-term highs.

Deron Wagner writes that chances are that several of the major indices will at least attempt to test their prior highs from July, but they will first need to move above resistance of last week's highs.

Today is "quadruple witching" options expiration day, a session in which contracts for stock index futures, stock index options, stock options and single stock futures (SSF) all simultaneously expire. Consider taking it easy today and just focusing on managing any open positions.

Over the next one to two weeks, the most positive thing the stock market could do is simply consolidate in a tight, sideways range.

Deron Wagner writes that it is reasonable to expect a bit of sideways action as stocks digest yesterday's gains, but his overall market bias has definitively shifted to bullish in the short-term.

Stock market reaction to the anticipated Fed announcement will be even more wild than usual. This volatility will be further compounded by the fact that both the S&P and Dow have been stuck to their pivotal 50-day MAs for the past three days.

Because the index was unchanged last Friday, the S&P 500 remains glued to convergence of its intermediate-term downtrend line and 50-day moving average.

As you can see, the S&P and Dow are now at pivotal "make it or break it" levels.

Deron Wagner explains that both the S&P 500 and Dow Industrials are now forming the right shoulders of bearish Head and Shoulders chart patterns, and the risk/reward ratio of selling short the S&P and/or Dow, or buying their inversely correlated ETFs, is now pretty good.

The breakout above the hourly downtrend lines in all three main indexes is bullish in the short-term, but Deron Wagner cautions to pay close attention to not only the market's price action, but the changes in turnover as well.