Market Psychology?
Turned more positive with jobs report on Friday
Europe still an issue near term with sovereign debt. (despite Greece bonds)
Washington Regs back in the forefront. Heathcare and Financial
Light economic data with Retail Sales on Friday with Consumer Sentiment

Investor Psychology?
Lack of confidence is creating short term volatility (Turned last week, but watching)
Lack clarity still an issue. We are trading on news and assumptions.
Economic data showed improvement, but not great.

Outside Market Events?
Politics in the forefront and disturbing with Polarization issues.
Greece on the side – Europe still a concern, i.e. Spain, Portugal and Italy.
Weekly jobless claims are becoming an event every Thursday now.

This Week:
Volker rule for financial stocks could disrupt gains in the sector.
Light week of economic data on tap
Consumer confidence promises to be interesting.
Watch the banking sector for some leadership

Last Week:
Jobs report sparks rally on Friday.
Churning market ahead of the jobs report – watch for follow through this week.
Retail Earnings were positive lifted the sector to new high
NASDAQ, Small and Mid cap indexes hit new highs! Watch to hold and expand

SECTOR WATCH:
Leaders: Strong Sectors
DJUS Consumer Cyclical – Retail excelled and gave boost from earnings. Broke to new high
DJUS Consumer Non-Cyclical – Broke to new high and setting pace.

Losers: Weak Sectors
DJUS Telecom – Bounced off low 105 and resistance at 109-110. Interest if move above 50 day EMA.
MSCI EAFE Index EFA – found support at the 200 day moving average. Moved back to positive

Limpers: Sideways
DJUS Healthcare – Held 310 support. Broke downtrend this week and moved higher!
DJUS Basic Materials – Resistance at 255 – watch for pullback or break higher
Utilities – Bounced and looking positive – 50 day is resistance.
DJUS Industrials – Broke back near the January high – looking for new high
DJUS Energy – Moved above resistance at the 50 EMA. need follow through
DJUS Financials – Resistance 50 EMA & 260. Watch for break higher to top of range.
DJUS Technology – Held support 542. Broke above resistance at the 50 day EMA
GSCI Commodity Index GSG – Support at 28.50. Hit resistance at 31.10 and moving higher.
Treasury Bonds – Yields rose last week on market rally. moving back to bottom of trading range.