5 drivers of the stock market for the week ahead

This past week of trading was an earnings fuelled rally that brought many stocks and indices right up to their resistance points. AAPL and GE both rallied the market with solid earnings and both had significant pullbacks with GE finishing lower on the day.  Monday is a huge day of earnings with many regional banks, lots of China plays and technology being well represented.   How will this week perform and what will drive the trading?

1) Earnings are a big story again as this week will be the heaviest week representing all major sectors.2) The most important driver will be the FOMC two day meeting that culminates on Wednesday with the standard 2:15 pm annoucement.  With QE2 set to expire in June, these meeting take on greater significance as to the wording in each statement.  Anything other than a QE3 announcement will feel like tightening and that could roil the markets.  The Fed must convince traders that inflation is well under control despite rising commodity prices and there is no need to tame inflation with higher prices.

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