With corporate confession season progressing, investors are getting a bit more careful. It’s always a bullish sign if the market rallies on bad news. And we’ll have plenty of bad news as the weakness in the technology sector continues. Investors are still watching the techs, forgetting that the rest of the market is on very firm footing, and will mightily benefit from the stimulatory policies on the fiscal and monetary side. My Master Key is firmly bullish at 6.82 percent, forecasting a rise of that magnitude in the broad market during the next month or so.

But before that happens, we have to get the negatives out of the way. The recent downgrade of the chip sector by a major brokerage isn’t helping this market. The Semiconductor Industry Association released its estimates for the sector and it wasn’t pretty. There was a 5 percent sequential drop in semiconductor sales and a 20 percent industry-wide decline quarter over quarter. That’s why Intel’s first scheduled mid-quarter update on Thursday will be very important.

The market will follow forward-looking comments with the utmost scrutiny, and that will keep volatility high. Despite the continuing flow of negative economic news, so far the market has been able to shrug off economic weakness. The latest jobs and manufacturing data failed to shake investor confidence, which is a big positive.

The Federal Reserve is likely to continue to be aggressive, with consensus expectations calling for a 25 basis point cut in June and another 25 basis points in late August, taking the Fed funds rate to 3.5 percent. That combined with the tax cut will be the powerful force moving this market higher. “Don’t fight the Fed” is an old saw on Wall Street—there’s a reason why traders say it.