Stocks closed flat Tuesday as the market struggled to find direction and determine what the short and long-term trends actually are. The macro trade seems to be back in focus as indicated by the big move in Treasuries and the U.S. dollar while equity correlation moves up. A lot will be contingent on the results and trading reaction to the November 2 mid-term elections and FOMC meeting in which an announcement on QE2 is expected.

The Dow Jones Industrial Average ended up 5.41 points, or 0.05%, to close at 11,169. The S&P 500 rose 0.02 of a point, or 0.00%, to close at 1185, and the Nasdaq was up 6.44 points, or 0.26%, to finish at 2497.

The CBOE Volatility IndexI:VIX moved higher for the second consecutive day on stable-to-higher index prices, closing up $0.37, at $20.22. November 25 and December 22 puts were active on total put option volume of 190,000 contracts compared to call volume of 68,000. SPY and QQQQ option implied volatility remains constant, suggesting VIX traders see more price uncertainty than SPY & QQQQ traders into the major catalysts next week. The VIX is up almost 10% week-to-date.

The SPDR S&P 500 ETF (SPY) - Get Report closed up $0.02, at $118.72, on put option volume of 918,000 contracts compared to call volume of 137,000, with active volume in December 117 and 118 puts. November put option implied volatility of 19 is below its 26-week average of 23. SPY has resistance at $119.95 and support at $118.50.

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The Power Shares QQQ Trust (QQQQ) closed up $0.14, at $52.03. QQQQ November put option implied volatility is at 20 and December is at 22, below its 26-week average. Put option volume of 196,000 contracts compared to call volume of 121,000.

The following economic data are expected to be released on Wednesday: MBA Purchase Applications at 7:00 a.m. EDT, Durable Goods Orders at 8:30 a.m. EDT, New Home Sales at 10:00 a.m. EDT, EIA Petroleum Status Report at 10:30 a.m. EDT; The highlight of the week will be the first look at Q3 GDP that is due to be published Friday morning. Consensus is forecasting growth of 2.1% for Q3, up from the Q2 reading of 1.7%.

The earnings calendar will be very heavy Wednesday. The following notable companies are schedule to report Before the open: open ACXM, ADP, ARW, AUO, AVY, AYE, BWA, CFR, CMCSA, COP, CP, DB, DND, DPS, EAT, ELN, GD, HES, IACI, IP, JNY, LAZ, LM, NOC, NYB, OC, ODP, PFCB, PG, PX, S, SAP, SLAB, SO, SVVS, TMO, WHR; After the close: AB, ACE, AHL, AKAM, ALL, ARRS, AVB, BDN, CAVM, CDNS, CINF, CYH, ENTR, FIRE, FLEX, FLS, HMA, ITRI, LOGI, LSI, NSC, O, OI, OTEX, QTM, PLXS, POWI, RA, RNR, SYMC, TER, TMK, TQNT, TRH, V, WSH.

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