The markets roared back once again - how many times is this "buy the dip" strategy going to work? It will be painful when it doesn't. SPX gained $28 to close at $2081. RUT wasn't quite as enthusiastic, but then again, it didn't fall as far either. RUT closed at $1240, down $8. Volatility contracted a bit with the VIX dropping almost a half point to 15.6%. But it wasn't a super-enthusiastic rally. Trading volume declined  across the board with two billion shares of the S&P 500 trading and trading declined 5% on the NYSE. Volume also declined 8% on NASDAQ.

The Empire manufacturing survey came in at 6.9 for March, down from February's 7.8. Industrial production increased 0.1% in February, somewhat better than January's 0.3% decline. Capacity utilization dropped off a bit in February, from 79.1% to 78.9%. Housing starts and building permits issue tomorrow and then the big kahuna, the FOMC announcement, on Wednesday. Did traders get a hint of that announcement and that set off the rally?