The big obvious elephant in the room for this week is the Fed. by Adam Sarhan

The big obvious elephant in the room for this week is the Fed.

Adam Sarhan

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I think what's happening today is the markets are in a wait-and-see approach ahead of the next big catalyst, which is earnings season, the way I see what's happening today is just a little bit of rotation occurring where you're selling leadership and you're buying undervalued, or you're hunting for value.

Central banks are doing their best to step in and send stocks higher, i think the Fed is more than ready to follow suit if market conditions worsen.

Investors are looking for clarity on two major catalysts - earnin... by Adam Sarhan

Investors are looking for clarity on two major catalysts - earnings season and Federal Reserve.

Investors are looking for clarity on two major catalysts - earnings season and the Federal Reserve, it's normal for the market to pause before a major level of resistance like 2,134, move sideways for a few days, even a few weeks and then blast off again.

This is a classic case of' buy the rumor and sell the news', over the last few weeks, stocks had soared in anticipation of more easy money, and now that we've got the news, stocks are selling off.

We're seeing this little rally from the last three weeks continue for now, you've got a notion the market has shifted back to the easy money trade. In the short term, that helps lift asset prices, but long term, that's not good.

We're now seeing a lot of weaker-than-expected economic data coming out, the bullish catalyst just isn't there to justify further rate hikes.

Oil is deeply oversold. The stock market is deeply oversold. The inability for the market to rally from deeply oversold conditions clearly tells you how weak the market is.

As we close out of the year, it's been a tale of two tapes, with narrow leadership holding up the major indices, while the vast majority of the market continues to underperform, the big story today as investors wrap up the year is that after all that's said and done, it's a flat year for the S&P 500.

Stocks are relatively quiet this morning, which is somewhat norma... by Adam Sarhan

Stocks are relatively quiet this morning, which is somewhat normal, after last week's shellacking.

Investors are waiting for more cards to come out of the deck and with the ECB meeting tomorrow and the Friday jobs number, there are a lot more data points to digest.

Today's data bodes well for Friday's jobs report and the hawks in... by Adam Sarhan

Today's data bodes well for Friday's jobs report and the hawks in the Philadelphia Fed.

Investors are pausing to digest the very strong six-week rally we had in October, and so far, this appears to be another healthy and shallow pullback in both size and scope.

Earnings are a mixed bag but you've seen the market rally over the last six years without strong earnings.

The market is in wait-and-see mode till the The Fed meeting and till we get more news out of China, the market is pausing to digest the steep August selloff and I expect the sideways action to continue for a while.

In the short term, the market was very oversold, global demand remains lackluster at best and while I expect the market to move mostly sideways, whatever action we are going to see today is going to be very sloppy.

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What the Greek government is doing is almost unprecedented for developed nations, i don't remember anytime in recent history where a developed nation literally shut down its banking system for an entire week.

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Barring an unforeseen event, the Fed will not be keen to rock the boat, i think Yellen has hedged her bets very carefully and remains data-dependent and I don't see a change in that strategy at the end of the meeting.

There is no need for the Fed to raise rates now. The economy simply is not strong enough and that's what today's data tells us.

So far, the Fed's been data dependant and the data including today's GDP numbers on average continues to be weaker than expected.