Market Overview Jan 21

What a day, we went up almost 10 points in SPX, then went down almost 10 points, then went back up again. Chop day, with no real direction yet, just like what the NYMOT chart is showing below. There is a big POMO on wednesday: http://www.newyorkfed.org/markets/tot_operation_schedule.html, this POMO may very well be the excuse bull needed to make the next big move. IBM after hour went down the gutter, this will not bode well for DIA tomorrow, similar to today, DIA ended in red. Divergence between DIA and SPY is getting really interesting. VIX bounce back down after touching the 50MA, interesting development it seems.

Chart attack:

See VIX chart, looks like MACD is trying to cross here with VIX trying to break the 50MA today, wait and see moment here. VIX need to show more power soon for bear party.

See SPY chart, low volume today on the sell side, touched middle BB and bounce back up, seem like there is so sort of support here in the background that is holding this up.

See DIA chart, volume here on the sell side today, with IBM after hour went to the gutter, this may increase tomorrow, depend on how everything else goes. 

See NYMOT chart, it is in an indecision period, base on MACD today, may break upward from the look of it. So because if you bearish base on DIA here.

Short term: Neutral