The markets appeared to stabilize today, but I am not coming out of the bomb shelter just yet. Tomorrow's FOMC announcement may cause some fireworks or it could be a dud. It is impossible to predict the Fed, much less the market's reaction. SPX gained $11 to close at $1793 and RUT also gained $11 to close at $1138. Volatility continued its decline with the VIX decreasing by 1.6 points to 15.8%. The VIX decline is significant because it suggests that the big institutional traders are not too concerned about tomorrow's announcement tipping us over the cliff. SPX and RUT are in parallel positions, both trading between the November highs as support and the December highs as resistance. It would seem surprising if this is all of the correction, but I don't think we can be too confident until after the Fed announcement.

Trading volume dropped off today with 2.4 billion shares of the S&P 500 trading. Trading on the NYSE dropped 22% and trading volume on NASDAQ declined 15%.

Durable goods orders declined 4.3% in December, down from November's positive 2.6% gain. The Case Schiller Housing Price Index for November was about flat with the previous month at 13.7% for November. The consumer confidence report from the Conference Board came in at 80.7 for January, up from 77.5 in December.

Grab your popcorn and wait for the FOMC announcement tomorrow at 2 pm ET.