How Many Worries For The Bulls This Week?

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Last week was fairly bullish for the market, but not so much as the week came to a close.

This is from the standpoint that the bullish case was so strong, yet the bulls did not rush through to even higher attainable highs. This was especially true for the small caps.

Other warning signs include the muted reaction to PBOC's rate cut. There was a time recently when similar cuts fueled +10 S&P points to start the day, yet Monday came out flatish.

March is the start of the QE in Europe, yet the eurozone markets are also muted. Traders may doubt the conviction in the bull thesis. The biggest runs mid-week last week came from the momentum stocks, which should indicate risk appetite yet the majors did not support with follow through.

Active traders can use clear weekly levels to profit in the short-term, while slower traders can use out periods to accomplish the same goal without the danger of weekly trades.

Chasing up at these levels can be dangerous. Markets have had incredible runs and fast money can push sell buttons quickly at the slightest sign of danger. Names in danger include Apple, Priceline and Amazon. While these can sound like a shopping list for bulls, they also carry a lot of recent profits. If markets show weakness, then smart money will book profits early.

Another worry for bulls is that markets recently celebrated the Greek "deal" about nine times on rumors of it happening without once pricing it out. These pops may have created frothy levels that could create air pockets into which prices can fall. To say the least, caution is warranted this week. Traders are better served waiting out the early hours of trading to gauge commitment from either side.

Check out the full outlook for this week in the video below: