Stocks ended last week on a high note, closing a smidge above strong resistance at 1900 for the S&P 500, which set a new closing high for the large-cap index, albeit on low pre-holiday volume.

The technical picture for stocks has shifted from bearish into neutral, and our fundamentals-based sector rankings appear to have moved from bullish to neutral, as well.

As the Federal Reserve eventually allows interest rates to rise, we likely will see a rotation out of value and into growth as defensive debt-intensive companies struggle relative to companies that have lower debt burden and stronger prospective earnings growth.

Last week, stocks continued their rebound from the edge of the abyss. Investors responded positively to a dovish combination of comments from Speaker of the House John Boehner and new Federal Reserve Chairwoman Janet Yellen.

There is no sugar-coating what happened to stocks on Friday. All around the world, stocks really took it on the chin as the usual support mechanisms that bulls have enjoyed failed to materialize.

There seems to be some trepidation among U.S. equity investors after such a strong finish to 2013. On Friday, the jobs report was disappointing, but investors quickly shook it off.