The Week Ahead: As the markets approach the possibility of another market peak, much attention this week will be paid to a broad list of economic reports starting with Monday's new home sales for February. Tuesday brings the March consumer confidence index. Wednesday, the durable goods report and weekly crude oil and gasoline inventories come out. Thursday, the final 4th quarter GDP, 4th quarter corporate profits report, and weekly jobless claims are released. The week concludes with personal income and spending numbers along with the construction spending for February.

Stocks to Watch: Genentech (DNA) weakened sharply when the company warned of flat 1st quarter sales. Shares of Imclone Systems (IMCL) rose sharply on news that Amgen halted the study of cancer drug Vectibix which competes with Imclone's Erbitux. Jabil Circuit (JBL) is forecasting a drop in 3rd quarter profits, possibly losing money. Shares of Synnex Corp. (SNX) surged on strong 1st quarter profits and optimistic 2nd quarter numbers. Finally, Kraft Foods (KFT) will be added to the S&P 500 after trading on Friday.

Special Note: The Dow, S&P 500, and Nasdaq all sport downside gaps left open from the opening of trading on February 27. They are 12,608, 1,445, and 2,492 respectively. These gaps could be filled before the current short term upswing in stocks is complete but is not a requirement before a new sell off begins. In fact a failed attempt to fill these gaps would more likely indicate a much weaker market than most market pundits surmise. Traders should stay alert for a reversal soon and look to go net short or raise cash quickly.

Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.

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