Solid data last week would point to a break higher. However, the activity has been anything but convincing for a breakout move. The S&P 500 index remains in the trading range despite the positive retail sales, increased consumer confidence and solid inventory data. What is going to be the catalyst to the upside? Will there be a move to the upside? The following are my list of sectors to watch:

Energy – The price of crude moved below the $70 mark. Will it remain? That is the key question for the week. If we move lower short oil is one play, but short energy sector overall is another. The key level for XLE is $54.40. The ETF managed a bounce off this level last week, watch to see if it breaks down. There are other potential plays on the list below from this sector.

Healthcare – The providers got a reprieve from the Senate Healthcare Bill without a public option. The sector rallied on this data. This will help the trend for the healthcare sector already in play. Watching for potential play in the HMOs and Biotech.

Transportation – The airlines moved up last week on the drop in crude prices. Not the best of reasons, but worth watching for a break from the triangle pattern.

Retail – look for break from triangle pattern. Good sales report last week as well as rise in consumer confidence. This all lends itself to a test of the recent high.

Watch the Dollar, Crude, Interest Rates and Commodity prices near term. They will lend direction to the broad markets based on the activity. Define your risk before you play!