We face a week full of data that could set the tone for the coming weeks. Housing, the consumer and earnings will all be in the news. Will we have an encore to last weeks gains or struggle at resistance? The NASDAQ and the S&P 600 indexes will offer some clues as they move towards the January high. Both broke through resistance last week and show some promise to the upside.

The sector leaders have been Industrials, Energy and Metals. Not the ones you need to take the broad markets higher, but they have done well the last two weeks. Technology started the rally off the lows, but has stalled a bit of late. Semiconductors were taking the lead as well, but are struggling with the 50 day moving average. If we are moving higher watch for these sectors to provide the push.

The weakness in the financial stocks remains a concern. The Fed action to raise the discount rate added to the concerns last week. The sector managed to bounce on Friday, but the outlook is getting dimmer in the banking sector. The push for regulatory action on banks and their investment portfolios is coming. This is inevitable and likely to be damaging to the earnings outlook for the sector. What any of us thinks independently of the impact on earnings is another issue, but we have to be aware of the financial risk to our portfolio. I am still not interested in the sector other than a trading opportunity.

The dollar made an attempt to break higher on Friday, but closed below the 81 mark on the index. Watch the dollar near term as it looks to be content in a trading range. Gold was ready to rise and the Fed action stalled the move along with a positive CPI report on Friday. It could test $107 on GLD and then rise short term. Worth watching for a possible trade. Oil has moved back near the top of it’s trading range. The question of how high it goes remains. The stronger dollar has not impacted the price relative to the optimism for higher demand. I am cautious at this level and would raise stops to protect the gains off the recent low. Bonds are struggling once again as the indication of the Fed hiking interest rates hangs over them. They have hit against resistance and yields could retrace some this week before resuming the uptrend in rates. If you own bonds hedge the risk as it continues to rise.

There is plenty to watch this week on every front. Washington will be in full swing with the made for television healthcare debate, Volker and friends are after banking regulations, Toyota testifies and jobs take center stage with the White House. Earnings from the retail sector will be on my list of things to watch. I am looking for better than expected data which could help the sector break from the current trading range. Economic data will be watched as well and there will be plenty for everyone. The housing data will be front and center following some positive numbers last week. New home sales will make or break the push higher by the home construction sector last week. Overall there promises to be something for everyone.

Stay focused on you goals. Have your stops in place and be disciplined!