A day after the senate failed to come to an agreement on the stimulus bill, a deal is said to be close Tuesday morning. Futures markets are now trading up, and even hit limit up halts in early morning trading. The S&P 500 is up 100 points, Nasdaq is trading up 294 points, Dow futures are up 818 points, and the Russell is up 42 points.

On the calendar: New home sales – Forecast: 0.714 M

Stocks to watch: DIS, MGM, BA, ZM

A look at the chart: The NQ is now trading above the 20 day sma on the 4 hr chart. Upward targets: 7280, 7328, 7443. Downward targets, 7237.5, 7199, 7132.