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Monday was a pretty slow day and investors are going to mark time, absent other market moving news, until the Fed makes its next decision.

The volume yesterday was ultra-light.

Let’s face it; bulls have seized the tape with “the worst is behind us” line regarding financials and the credit crisis. From the WSJ was this quote attributed to T. Rowe Price portfolio manager Daniel Shackelford:
We established that the Fed was going to backstop the markets, keep things stable and slowly but surely nurse the markets back to health… risk-taking has come back in the market.
So, that’s the bullish spin.

And, things do look better, but hold on a second. Below is a chart of the QQQQ ETF during 2000. Note the sharp initial April drop followed by a strong rebound in August/September. Then bulls tried to bring markets back only to fail when indexes went into a 2 year free-fall. Please keep and remember this chart since in 2000 we had a tradable rally and perhaps this is just a repeat.

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Source: Tuesday Outlook: Y2K Head Fake Redux?