Think of this market as your dad sleeping off Thanksgiving dinner on the couch. SPX has had a huge run over the past month, so a little sideways consolidation trading isn't too surprising. SPX opened and ran up to $1941 this morning, but then dove down to $1931 just after noon. Then SPX just chopped sideways the balance of the day, closing at $1938, up $2. RUT behaved similarly, closing up $4 at $1167. Volatility rose just a touch with the VIX closing at 12.7%, up a half of a point.

Trading volume was light with 1.8 billion shares of the S&P 500 stocks trading, still well below the 50 dma. Trading volume on the NYSE rose 8%, but volume dropped 4% on NASDAQ.

The Empire manufacturing index from the New York Fed came in at 19.3 for June, up slightly from 19.0 in May. Industrial production for May reported at +0.6%, an increase over the previous month's 0.3% decline. Capacity Utilization rose slightly in May to 79.1% from April's 78.9% level.

We may see light trading tomorrow as well, since the FOMC announcement is due Wednesday afternoon.  I don't expect anything really new from the Fed announcement, but it is hard to predict the market's reactions. It isn't always rational (or at least doesn't match my rationale).