Three days of digesting can cause indigestion for investors. It is a low volume, small range of trading and it is raising questions to the validity of the move off the February lows. I will be the first to admit it is a concern and something we have to protect against. Yes, this is a short term perspective, but the lack clarity relative to growth in the economy justifies the concerns. Last night I was looking at the charts of the major indexes with just price and volume on the chart and you can clearly see in the Dow Jones Industrial Average the discrepancy between price rising and volume declining. There is a similar issue with the S&P 500 index. However, the good news is the NASDAQ volume actually was positive during the last 8 trading days. This activity is reason enough to watch, take what the market gives, but have your stops at the level of risk you can tolerate.

Today will be all about the jobs report and how it is interpreted by investors, analyst and the media. The estimates are for a loss of 90k jobs in February. I look for this to be in the 90-120k range. The January revision are where I would be concerned. If they are adjusted too much to the downside we could see a reaction. Watch and see is all I can say.

The commodities experienced a modest pullback from their moves higher yesterday, but remain on the rise off the February low. Still looking for oil to test the top of this current range near the $83.50 level. Gold tested the move above $110 (GLD) and held on to close at $110.85. The base metals (DBB) are struggling with resistance at the 50 day moving average and agriculture (MOO) is near the 50 day moving average as support. There is plenty of room to the upside in the commodities, but watch the downside risk and set your stops accordingly.

Technology has retraced roughly 62% of the turn lower and is at the 50 day moving average. Look for a push higher to help lead the broad markets back to the January high. IYW has below average volume on this move as well. As stated above the discrepancy is something to watch and measure the risk. Software and networking have both moved better than semiconductors and internet stocks in the sector.

Financials continue to languish in their five plus month trading range. Banks have been the biggest issue for the sector as they remain subject to scrutiny by investors and regulators. Brokers have not fared much better, but Goldman Sachs moved nicely yesterday leading the sector higher and a break through resistance. The insurance sector (KIE) broke above the January high this week and continues to gain. They are the bright spot currently.

The key is to remain patient and let this current volatility play out. There are plenty of outside market activities to evaluate every day. Washington remains number one on the list with financial reform, healthcare overhaul and potential tax hikes everywhere. It makes investors uneasy with so many potential uncertainties facing them. The economic data remains a point of contention as some see the glass as half empty and others see it as half full. The choppy market environment makes it tough to be a longer term investor. This is a traders market and even the sector movement shows it to be a short term outlook. Stay focused and most of all stay disciplined.

Have a great day of investing.