Marc Pado Needs Quotations

From now on, strong economic numbers threaten another rate hike. Weak numbers point to profit disappointments. What the bull market needs is a catalyst, which would likely need to be a break in energy and basic materials prices.

There is no question that the tone has turned more positive. We haven't broken out yet, but the markets are poised. Now all we need is for the news to hit the ball out of the park, and it needs to be perfect. Crude is still high and the yield curve is still flat, but the market's focus is on other things right now.

Yields, especially on the long end, have been dogging the market in recent weeks. And retail sales down more than expected shows enough of a slowing to question whether or not the Fed needs to continue to act.

By the end of this week, the attention will shift to the December employment report and then on to earnings starting next week. By the end of the month, earnings and forward-looking projections will be what needs to step up to the plate if the market is to continue the rally.