The Four Sisters had a relatively quiet week as continued dollar strength was the main focus. Concerns over the growth prospects of the Euro-zone sent the greenback to a two-year high against the pound and six month high against the Euro. Commodities continue to fall most notably crude, gold, and silver as the deflationary cycle moves forward.

The financial complex is still lagging the markets and will be a focal point to see if this rally has any more staying power. If the XLF can regain 22 on a closing basis, we think the SPX will continue higher with the next resistance level coming in the 1340/1350 range. However, if 1270 lets go, a retest of the July lows is highly probable.