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The headline writers couldn't keep up with the late day "stick save" as most had stocks down on the day. But, editors got things changed quickly. Bulls want Dow 12,000 and with another round of

POMO

the easy money is there. It's not just us stating the obvious, Jeremy Grantham's

Pavlov's Dog on QE2

essay and even MarketWatch discussed this with "

Market Addicted to QE

." As far as most are concerned, even Bernanke, B still follows A and one goal of QE is to raise stock prices.

Commodity prices were lower Tuesday as oil continues to slide while precious metals fell. Remember, it's options expiration at the COMEX Wednesday so caution is advised.

Economic data was mixed with home prices falling sharply while Consumer Confidence beat expectations.

Earnings rolled in, and with few exceptions, continued to beat analysts' estimates by wide margins (What do they pay these guys?) 

Volume improved dramatically from Monday while per the WSJ, breadth mixed to negative.

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Continue to U.S. Sectors, Stocks & Bonds

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Continue to Currency & Commodity Markets

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Continue to Overseas Markets & ETFs

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The

NYMO

is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

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The

McClellan Summation Index

is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.

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The

VIX

is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.

Continue to Concluding Remarks

The Fed is controlling this market and that was obvious Tuesday. Yes, earnings overall are good and beating estimates by a wide margin. This is the result of stock buybacks, price cutting and good overseas earnings for those so blessed. But, overall the market is in a highly manipulated state. POMO should expire in June giving the "sell in May and go away" crowd more to chew on.

More earnings Wednesday featuring BA, ADP, COP, EK, GD, UAL, UTX, XRX and many others.

Let's see what happens. You can follow our pithy comments on

twitter

and become a fan of ETF Digest on facebook <!-- Facebook Badge START --><a href="http://www.facebook.com/people/Dave-Fry/100000609763830" target="_TOP" style="font-family: &quot;lucida grande&quot;,tahoma,verdana,arial,sans-serif; font-size: 11px; font-variant: normal; font-style: normal; font-weight: normal; color: #3B5998; text-decoration: none;" title="Dave Fry">Dave Fry</a><span style="font-family: &quot;lucida grande&quot;,tahoma,verdana,arial,sans-serif; font-size: 11px; line-height: 16px; font-variant: normal; font-style: normal; font-weight: normal; color: #555555; text-decoration: none;">&nbsp;|&nbsp;</span><a href="http://www.facebook.com/badges/" target="_TOP" style="font-family: &quot;lucida grande&quot;,tahoma,verdana,arial,sans-serif; font-size: 11px; font-variant: normal; font-style: normal; font-weight: normal; color: #3B5998; text-decoration: none;" title="Make your own badge!">Create Your Badge</a><br/><a href="http://www.facebook.com/people/Dave-Fry/100000609763830" target="_TOP" title="Dave Fry"><img src="http://badge.facebook.com/badge/100000609763830.599.930692719.png" width="232" height="84" style="border: 0px;" /></a><!-- Facebook Badge END -->

Disclaimer: Among other issues the ETF Digest maintains positions in: XLF, TBF, DJP, USL, EFA, VT, MGV, BND, BSV, VGT, VEWO, VNO, IAUY, DJCI, DJP, VMBS, VIG, IEV, ILF, EWJ, EWG, EWU, BWD, GXG, THD, AFK, BRAQ, CHIIQ, TUR, & VNM

The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell any security.  Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period.  Chart annotations aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at

www.etfdigest.com

.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Dave Fry is founder and publisher of

ETF Digest

, Dave's Daily blog and the best-selling book author of

Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management

, published by Wiley Finance in 2008. A detailed bio is here:

Dave Fry.