NEW YORK (TheStreet) -- The stock market has been choppy so far in 2015 as investors wait for the Federal Open Market Committee to begin the "normalization" of monetary policy and set the stage for a higher federal-funds rate. If the FOMC omits the word "patient" from the following sentence, investors may assume that normalization will begin following the committee's meeting in June.

Here's the key sentence, "Based on its current assessment, the Committee judges that it can be patient in beginning to normalize the stance of monetary policy." If the FOMC indicates that economic data show progress toward the committee's employment and inflation objectives, normalization can begin sooner rather than later.

The scenario may awake the bears from hibernation, as higher interest rates would indicate that the FOMC has taken punch bowl away from the bulls.

Here are the conditions that would lead to a stock market correction.

The Dow Jones Industrial Average, the Standard & Poor's 500 Index, the Nasdaq Composite Index, the Dow Jones Transportation Average and the Russell 2000 are the five major equity averages that are considered the U.S. stock market.

Each average has its own technical chart characteristics, and all five must have weekly charts that are in sync negatively to warn that a stock market correction is set to begin.

To signal a potential correction, all five major averages must have negative weekly chart profiles simultaneously.

Each must have a weekly close below its key weekly moving average with a momentum reading declining below the overbought threshold of 80.00. That would confirm the recent highs as cycle highs with downside risk of 10% or more.

The current market dynamics are interesting as Monday was the sixth anniversary of the March 9, 2009 bottom from the crash of 2008. Tuesday was the 15th anniversary of the peak of the Nasdaq bubble in March 2000.

Here's the current status of the weekly charts for the major averages, followed by the latest trading strategies for the exchange-traded-funds that represent the Dow 30, S&P 500 and Nasdaq 100.

The Dow Industrials (17,895 at Thursday's close) set an all-time intraday high of 18,288 on March 2, and is above its key weekly moving average of 17,859. Its momentum reading is just below the overbought threshold of 80.00 at 78.32.

The S&P 500 (2,066.0 at Thursday's close) set an all-time intraday high of 2,119.5 on Feb. 25, and is below its key weekly moving average of 2,071.2, with its momentum reading slipping just below the overbought threshold of 80.00 at 78.50.

The Nasdaq (4,893 at Thursday's close) set a multiyear intraday high of 5,008 on March 2, and is above its key weekly moving average of 4,843 with its momentum reading above the overbought threshold of 80.00 at 85.32.

Dow Transports (9,005 at Thursday's close) set an all-time intraday high of 9,310 on Nov. 28, and is above its key weekly moving average of 8,965, with its momentum reading below the overbought threshold of 80.00 at 59.86, which is down from 60.37 on March 6.

The Russell 2000 (1,236.64 at Thursday's close) set an all-time intraday high of 1,243.33 on March 2, and is above its key weekly moving average of 1,209.29, with its momentum reading above the overbought threshold of 80.00 at 86.4.

Here are the weekly charts for the ETFs.

SPDR Dow Jones Industrial Average ETF (DIA - Get Report) ($178.97 at Thursday's close) set its all-time intraday high of $182.68 on March 2. The weekly chart is neutral with the ETF just above its key weekly moving average of $178.49. The fund has a momentum reading that's declining at 79.14, which is below the overbought threshold of 80.00.

Investors looking to buy the fund, known as Diamonds, should place a good 'til canceled limit order to purchase it if it drops to $150.82 and $145.21, which are key levels on technical charts for all of 2015.

Investors looking to reduce holdings should place a good till canceled limit order to sell this ETF if it rises to $182.68 and $186.74, which are key levels on technical charts until the end of June.


Courtesy of MetaStock Xenith

The SPCR S&P 500 ETF (SPY - Get Report) ($207.15 at Thursday's close) set its all-time intraday high of $212.97 on Dec.19. The weekly chart is positive with the ETF just above its key weekly moving average of $207.10. The fund has a momentum reading that's declining at 70.26 and rising but below the overbought threshold of 80.00.

Investors looking to buy this fund, known as Spiders, should place a good till canceled limit order to purchase it if it drops to $158.52 and $155.57, which are key levels on technical charts for all of 2015.

Investors looking to reduce holdings should place a good till canceled limit order to sell this ETF if it rises to $226.62, which a key level on technical charts until the end of June.


Courtesy of MetaStock Xenith

PowerShares QQQ Trust ETF (QQQ - Get Report) ($105.80 at Thursday's close) set its all-time intraday high of $109.42 on March 2. The weekly chart is positive but overbought with the ETF just above its key weekly moving average at $105.73. The fund has a momentum reading at 81.24, which is still above the overbought threshold at 80.00.

Investors looking to buy this tech-heavy ETF should place a good till canceled limit order to purchase it if it drops to $89.42, which is a key level on technical charts for all of 2015.

Investors looking to reduce holdings should place a good till canceled limit order to sell this ETF if it rises to $111.30, which is a key level on technical charts until the end of June.


Courtesy of MetaStock Xenith

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the funds mentioned.