As we head into the second day of this two-day Fed meeting the market is still tacking on some subtle gains. All in all, the day was very indecisive as investors and short-term traders alike tried to get a feel for what is to come in Wednesday's Fed announcement.

The market action on Monday was rather hesitant, but the market still managed to post some decent gains by the end of the day, closing at highs.

A lot of the disappointment on Friday was attributed to reduced expectations of next week's Fed meeting.  Many had been hoping for a 50 basis point cut, but the consensus at this point is for a 25 basis point cut or even that they may not cut rates again at all.

If the momentum remains strong, Toni Hansen sees the market pushing back up into December's congestion in the next week or two, but believes it will likely stall before it could manage such a move.

One of the best performing sectors throughout this shortened trading week thus far has been the retailers, up 9.7% so far this week.

Given Tuesday's flush, Toni Hansen thinks there is a very strong probability that the market will attempt a larger correction off the lows as the week progresses. In the long run, however, she would not be betting on any new record highs for quite awhile.

The recent selling took place on stronger momentum than in the decline from October into November; that will make it more difficult for the market to pivot quickly off lows.

While the market experienced numerous corrections off support levels, not one of them managed to gain the upper hand and take over the momentum from the bears.

Despite the turnaround off the day's lows, the market had a difficult time holding onto the afternoon gains and closed with losses across the board.

The trading range that we've been dealing with over the past four days gave in on Tuesday to the bearish pressure.