Awaiting Earnings

The market continues its sideways, unexciting trading activity between 1050 and 1130 with the recent trend moving the market back below the 1100 level -- indicating another attempt by bears to seize momentum - although the lack of any truly dire news makes that an unlikely scenario. Most expectations have calculated in a rather stagnant and slow growth economic forecast. Certainly, more tumultous and bearish cards are in the deck, but for the time being we all look to earnings season for direction, or maintenance of the status quo. Expect some moderated earnings with comments about European issues from companies. Cautious outlooks will present little motivation for stock to streak higher. Add in continuously disappointing employment reports and I think we remain in this range until the next GDP report or a European wildcard - both of which I would think tend to drive us lower as opposed to higher, but again, lower the 1050 will take some serious volatility, and the only place I could see that out of (but don't expect yet) is China.