At this time, the markets are looking for a TARP deal out of the Congress. Over the weekend, the U.S. Senate was unable to agree on a stimulus deal. This news caused the S&P 500 futures to trade limit down in overnight trading. Another procedural vote on a stimulus package in the Senate will take place at noon today. A failed vote could send the markets sharply lower again.
Earlier today, the Federal Reserve announced an open-ended quantitative easing program. They will buy corporate bonds in the primary and secondary markets. They will also buy Agency Commercial Mortgage Backed Securities. This news helped the markets to stabilize and actually rally before the opening bell. Now the markets seem to be waiting on the politicians once again.