With such a strong trend, PowerShares WilderHill Clean Energy (PBW) is definitely on Deron Wagner's watchlist for a potential long entry, but it needs to correct first, either by price or time.

The balance of power clearly remains with the bulls. Nevertheless, astute traders will avoid blind complacency on the long side because the market has been full of surprises lately.

We still have the mixed technical picture of the Nasdaq holding near its six-year high, while the S&P and Dow remain stuck below their prior highs, struggling to stay above their 50-day moving averages. Until one of these indexes wins the tug-of-war between the bulls and bears, trading is likely to remain choppy and erratic.

If QQQQ pulls back further in today's session, down to the $48 area, it will present a low-risk buying opportunity. Prior resistance of the multi-year high should now act as major support.

With both the S&P and Dow just a few points below their all-time highs, be prepared for erratic volatility as traders place their bets on both sides of these pivotal resistance levels.

Deron Wagner writes that the major indices are still telling a tale of two markets.

The Nasdaq 100 Index Tracking Stock (QQQQ) still looks good and is buyable on a pullback.

The biggest area of concern remains the relative weakness in the broad-based S&P 500.

With the market closing three hours early today, there probably won't be much happening beyond the first hour.

If the Nasdaq manages to leap to a new closing high this week, above the 2,626 level, it will probably pull the discombobulated S&P back above its 50-day MA. Conversely, a firm close below the June low of 1,490 in the S&P, or a breakdown below the 50-day MA in the Dow, would likely cause the Nasdaq to again fail its bullish consolidation.