Go ahead and celebrate an amazing end to the week and month (we sure did), then, come with me into volume world. No doubt, the recent rally has been fueled by the sectors I have been writing about since 2012 began-financials, real estate, biotech, transportation; but what has to happen now to sustain this move? Statistically, the market stays firm into a presidential election when an incumbent is running. Second, the European situation has been like the buying opportunity gift that keeps on giving.  Third, although not as robust as some would like, the economic indicators have shown U.S in the lead as far as a recovery goes. Some economists are saying that commodities are down due to a low demand which in turn means an economic downturn. But not only do I not see that in the market, it's a diversion from the old formula (gold and US market have to run in tandem) that we called right from 2012's onset that continues to play out.

So, what about volume? Friday had a significant accumulation in volume in S&P 500, Russell 2000 and the DJ Industrials. What did not, NASDAQ 100. Can you guess where I'm going with this? That's right, the leaders that need to lead. So as this week begins (and I suspect it'll be slow with the U.S holiday on hump day this year), watch those leaders. Volume was light in NASDAQ, although the price action outperformed the other indexes. That screams "Watch ME now!" All Indexes back to unconfirmed Bullish Phases

S&P 500 (SPY) 136.25 high from June 19^th (last swing high) has to clear to continue. Could also see some correction or digestion ahead of the holiday

Russell 2000 (IWM) Cleared 78.00 handily, which is now support.

Dow (DIA) As long as 126.80 holds, looks good

NASDAQ 100 (QQQ) Big eyes here next week. Has to hold 63.20, better yet, 63.50 and if so, then clear 64.57 for new leg up.

ETFs:

GLD This metal has lots of traders confused. Touched the 50 DMA. Could be setting up for a low risk short

XLF (Financials) First close over the 50 DMA since early May. 14.45 level now has to hold

IBB (Biotechnology) Resilient. But still has to clear last Wednesday's high

SMH (Semiconductors) Interesting candle. Let's see what happens at around 32.10

XRT (Retail) I am still holding out on any long positions here and maintaining my stance as the “go to short” if market rolls over.

IYT (Transportation) Long term, looks great. Short term, have to wait for some digestion if not already long

IYR (Real Estate) Up, up and away. Only nothing goes straight up. Watch for a dip and/or digestion.

USO (US Oil Fund) If this runs to 34.50 will be a great short.

TBT (Ultrashort Lehman 20+ Year Treasuries) To me, it's all about 16.12

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