In the market Monday the short squeeze on oil waned as all the quick to cover shorts did so but the big shorts said no thanks. Market volume dried up as buyers went on strike waiting to see if Yellen really does stick to her previous communication of four interest rate hikes in 2016 or instead acknowledges that the market is about to be devoured by the bears if she doesn't back off to a one and done statement.
The following quote has been around the internet but if you haven't seen it here it is:
"What the Fed did, and I was part of it, was front load an enormous market rally in order to create a wealth effect...and an uncomfortable digestive period is likely now." - former Dallas Federal Reserve Governor Richard Fisher - January 5, 2016.
Looking at the charts below, we see that on Monday the indices gave back the gains from Friday's short squeeze as traders saw that the oil short squeeze is over and realized that the market now desperately needs a rescue from the Fed.
click on image to enlarge
Trade well my friends