Both the S&P and Dow remain in intermediate-term downtrends, while the relatively strong Nasdaq is in a sideways range. As for the short-term, Deron Wagner's bias is neutral to slightly bearish.

Deron Wagner is considering staying positioned on both sides of the market, long sectors with relative strength and short those with relative weakness.

Until the major indices get in sync in one direction or the other, Deron Wagner writes that a position on both sides of the market is the safest bet.

The divergence and tug-of-war within the broad market could result in choppy trading conditions in the coming days.

If the S&P 500 and Dow Industrials fail to move back above their 50-day MAs within the next day or two, it could lead to a substantial short-term pullback in the broad market.

Deron Wagner is prepared to re-enter bearish positions in the Dow or S&P 500, but only if they fall below Friday's lows and their hourly uptrend lines from the August 16 lows.

Both the S&P 500 and Nasdaq Composite are testing pivotal resistance of their intermediate-term downtrends.

If the broad market's price action of the past two days is any kind of guide, it appears we may be entering another period of overall indecision.

The major indexes have now entered short-term downtrends and the next major levels of support are the prior intraday lows that were set on August 16.

It's important for the S&P to hold support of the convergence, otherwise, momentum could quickly unwind back to the downside.