The 1,280 level on the S&P 500 seems to be a very difficult area for the market to break through. The fizzling of yesterday's early rally didn't feel very reassuring and again today we have an early morning rally that puts the S&P right around 1,280. If we get more sellers in the afternoon and lose a 100 point advance again, the bears will use it as fuel to remain unimpressed with recent market action.

As for ways to make money in this trading range environment, Sears Holdings (SHLD) reports earnings on Thursday. I would expect a bottom line that exceeds expectations. Whether or not it results in a huge stock price move or not, I don't know. However, the shares are trading $20 per share below the highs made after their last quarterly report. Retail earnings from Target, Kohl's, Federated, and Dillard's have been strong, much to the surprise of those warning of impending consumer doom. This bodes well for the Sears report.