As the week hits the midway point the markets remain off their lows for the week, but still disconnected overall. The S&P 500 (SPY  ) is just 1% off a 3 month low and continues to stay under what many technical traders will call resistance in the short term. Earnings has, and will continue to play a critical role in the short term direction of the Index.

The Nasdaq 100 (QQQ  ) on the other hand is just the opposite. The tech heavy index finds itself just 1% off its all time highs set early last week. Earnings has helped this week as Netflix (NFLX  ) reported much stronger than expected results which catapulted the stock up almost 20% in one day. This, along with others has helped to support the index this week. Earnings in tech stocks are not over though. There are many big Nasdaq names reporting in the coming weeks, Apple (AAPL  ) being one that will certainly grab traders' attention.

Gold (GLD  ) has finally come off its multi-week lows with a rally that started Tuesday. The small, but welcome rally has put almost 1.5% on the board for Gold this week. The rally in Gold has helped the mining stocks (GDX  ) enjoy a nice bounce as well. Up over 7% as of Wednesday, the gold mining stocks are almost to a technical resistance area ($25) where short term profit taking is expected.

Bonds (TLT  ) have also started to move off their lows after being straight down in recent weeks. The move has been slightly more muted than that of gold. Still the bounce has begun a small amount of short covering from the short term traders that benefited from the recent decline.

Though it has been quiet recently, by Wednesday the Oil market shot up over 2% (USO  ). Previously traders had not been concerned with the recent pullback as it was slow and steady. As of Wednesday a new round of bulls chased the stock all the way to new 3 month highs.

For them moment the focus continues to be earnings focused. Any large moves in sector ETF's likely will be caused by large beats, or misses.