Today should be an up day for the markets

After an initial buying surge in the first 15-20 minutes of yesterday's session, the sellers came in and took us down to bounce off that support line at 113.20 on the SPY (or 1130 SPX), which was the previous swing high from June.  After that, we basically chopped around the rest of the afternoon, rising slightly into the close. 5 minute and daily charts presented below for your perusal (click to enlarge).

After yesterday's selling, coupled with it being POMO Tuesday and a very light reporting day on the economic front (ISM Non-manufacturing data at 10:00 AM is it, I think), I would expect the bulls to ramp us back up to take back yesterday's losses at a minimum.  Wednesday is also a POMO day, but then that's it.  No more Fed liquidity injections are planned for at least the next two weeks, so I'm thinking that the party is over on this engineered rally by the end of the week, but more on that later.

Zerohedge also made a short post [here] yesterday that I don't quite understand. 

As circulated by a very prominent prime broker, the following names (and several others) might show up on buy-in lists tomorrow:  NOK and KLAC, but most notably SPY and IWM. As a reminder these kinds of broad index ETF buy-ins occurred in March and April 2009 when the market surged higher day after day without a care in the world.

Not being a Wall St. insider,  I'm not sure what this buy-in list referred to above is, or who gets it, or what, if any real impact it has, but thought it worth sharing.

As for later in the week, I think we could start seeing some significant selling, once Weds' POMO is behind us, but I would be careful about loading up on shorts prior to all of the employment data coming out on Friday.  I can't find the article now, but yesterday on CNBC.com they ran a headline article stating that there's good reason to expect that the jobs numbers coming out this week will be very poor.  When I see headlines like that from an organization like CNBC, who is usually the biggest cheerleader around, I start getting suspicious.  Sure, I don't expect that the jobs numbers will be very good either, but this sounds like another case of significantly  lowering expectations prior to the release of the report so that either (a) the impact of a very negative report is lessened (resulting in little market reaction), or (b) if the numbers are bad, but not quite as bad as what CNBC is expecting, it will be a reason to crank up the propaganda machine and pump the market again.  At any rate, beware of another potential surge to come, and of course, keep an eye on the news....as that (and the Fed) are the only things that are driving market direction these days.....certainly not company fundamentals or market technicals.

Good luck trading.