People are looking for more clarity in terms of Iraq, interest rates, oil prices and the dollar.

Bush wants to prove that he has no interest in the Iraqi oil by doing what he did to Iraq.

I don't see that there's any motivation to move higher. The concerns about interest rates, oil prices and Iraq aren't going away. I think we're going to stay in a volatile range. The best we can hope for is the market to move sideways for a while.

By the fourth quarter, we'll have better clarity on the presidential election, we'll know more about interest rates, about how the transition of power in Iraq has played out, and hopefully, oil prices will be under control.

Bonds finally showed a little reversal. We put in a high on the long-terms and then dipped off of that. I think the big bond funds came in and started taking profits after the recent run. The real test will be if we can hold these levels.

If the rate increases do stall out at 5 percent, I think there's still tremendous upside room for this group of stocks. Rates will be a very key metric that's going to determine whether these stocks make new highs or pull-back.