As the second-quarter earnings season begins this week, investors will look to companies' earnings reports to support the notion that economic recovery is under way. All sectors are expected to report earnings losses, but at rates less depressed than originally forecast. Healthcare, consumer staples and utilities are expected to fare the best, all with losses under 7 percent. Materials and energy sectors are expected to fare the worst and to report earnings losses in excess of 60 percent.

Of primary interest to investors will be companies' projections for more profitability and increased consumer demand for the rest of the year. Optimism could translate to support for the market. Also favorable for the market would be continued demand for U.S. Treasury securities.

On Monday, the Institute for Supply Management will release its June data on the service sector. On Friday, weekly initial jobless claims figures will be announced. A rise in claims would indicate weakness in the recovery and be negative for the market. Also on Friday, data on the international trade deficit for May and the Reuters/University of Michigan surveys of consumer sentiment for July will be reported.

6 Stocks to Watch

Goodyear Tire & Rubber (GT) is sitting on support after forming a double top. Baxter International (BAX) broke through resistance, which will now act as support.

Both M&T Bank (MTB) and MasterCard (MA) have both hit resistance at the top of a downward sloping channel.

Symantec Corporation (SYMC) and Vulcan Materials Company (VMC) have both finished forming wedges. Breakouts in both are imminent.

Dave Mecklenburg is the Editor-in-Chief of TigerSharkTrading.com.