With earnings season over and the monthly jobs report behind us, markets will likely focus on Europe and the outcome of ObamaCare before the Supreme Court which is due out this month on a Monday. Heading in to this week, the bulls have the upper hand after putting in at least a trading low last Monday. You can read the details in Street$marts, which is also posted http://www.investfortomorrow.com/newsletter/CurrentStreet$marts20120605.pdf.
With the Dow at 12,550, we could see 12,750 – 13,000 this month and into July before the next bout of weakness hits. I would give the upside the benefit of the doubt until 12,300 is seen again. Unsexy sectors like telecom, healthcare, consumer staples and utilities all behave well and should offer decent risk/reward. The problem is that these are defensive in nature and not what you want to see lead the way in very healthy bull market, but we’ll see what kind of quality we get during this rally before turning negative again.