Earnings reports on Wednesday from big banks like Goldman Sachs (GS) and JPMorgan Chase (JPM) were encouraging. And Apple (AAPL) got a much-needed boost from the top tech analysts. However, Goldman’s analysts tried to throw a wet blanket on the markets earlier this week with their expectation that earnings reports overall this year would be “uninspiring” and that equity returns this year likely will be only in the single digits.

Last Monday was a banner day for most indices with S&P 500 hitting at new 46-month high of 1422.  Alas, a week later, today, it closed at 1382, down nearly -3%.  The NASDAQ and DJIA exhibited similar behavior.

Basic Materials and Energy have been the leading sectors so far this week, as the overall market continues to seek support, as well as leadership for moving higher. But the dollar seems determined to spoil the party.

We have all heard the old Wall Street adage to “sell in May and go away” until October, as the market historically underperforms in the May-September timeframe. And indeed, after the “bin Laden gap up” at the open on Monday, stocks quickly turned tail. Today, the selling intensified following the disappointing ISM Non-Manufacturing Index for April, with Energy and Materials the hardest hit.

4 Stocks for an Odd Market

by David Brown, Chief Market Strategist, Sabrient Systems

As it turned out, the market was undaunted by the S&P negative outlook on U.S. debt. After the initial shock wore off, which took one down-day last Monday, the market bounced back and was quite positive for the rest of the week.