Yesterday's market action was about as exciting as watching paint dry. And that's just the way the bulls like it.

The major stock indexes finished virtually flat on a day in which the fireworks were few and far between. The Dow Jones Industrial Average dropped 11.7 points, or 0.1%, to 12708.8, snapping a four-day winning streak.

At its intraday high, the blue-chip index jumped 44 points and hit its highest level since last May. But the small rally faded and the Dow listlessly drifted through much of the trading session. The index bounced between positive and negative territory 38 times throughout the day. Lets just call it a draw.

Meanwhile, the S&P edged up 0.62 of a point, or 0.05%, to 1316. It wasn't pretty, but the index managed its 5th straight gain and 12th rise out of the last 14 sessions. The tech-heavy Nasdaq Comp edged down 2.5 points, or 0.1%, to 2784.

The calendar shows we're only in the latter part of January, but the broad market has staged a remarkable reversal from the constant volatility witnessed in 2011. The Dow had a triple-digit move to kick off the new year, but hasn't had another one since then.

While the excitement level may have dipped significantly from six months ago, the bulls are probably feeling better about their prospects. The old adage "slow and steady wins the race" can be applied to market psychology. Signs of a so-called healthier market are portrayed when the market can march higher at a slow and steady pace.

That's exactly what we've witnessed in January. The Dow is up 4% this month, while the S&P 500 and Nasdaq Comp have fared even better, up 4.6% and 6.9% respectively.

Another heartwarming sign for the bulls is the fact that stock correlation is starting to disperse. Correlation, which had hit a high of 74% in August, is now down to 15%, according to BofA Merrill Lynch, which marks the lowest level since April 2011.

The fact that Europe doesn't appear on the verge of imploding has a lot to do with this. The market last year seemed to move on every whiff of a European headline. That fear trade has diminished quite a bit. And yes, the Greek debt talks represent dark clouds that continue to linger over the market. But with the euro back above $1.30 and European bond yields easing, those clouds don't seem as ominous as they used to. At least for now.

Tuesday brings another heavy earnings day. A slew of blue chips report in the morning, including McDonald's, DuPont, Verizon and JNJ. Apple and Yahoo headline the big names expected to post quarterly results after the bell.

The Fed's FOMC meeting kicks off today and the Richmond Fed's business activity survey is due out at 10 a.m. ET. President Obama's State of the Union address is slated for Tuesday night.

Morning MarketBeat Daily Factoid: On this day in 1939, a major earthquake struck south-central Chile. The earthquake had an 8.3-level intensity and caused the most deaths in Chile, with the death toll coming in at around 30,000. Around 3,500 homes and the Cathedral of Chillan were destroyed. The new church that was built following the earthquake was specifically designed to withstand major earthquakes.