The market pulled back last week and volume started to creep back up. It was an options expiration week which typically will be a higher volume week. Despite the 2% decline, all indices held their must hold support levels: SPX 1301, Nasdaq 2700 and Russell 800.

 The bulls will need to protect those support levels through a barrage of data that is scheduled for this week. First, the U.S. debt ceiling talks will intensify as the deadline for default gets nearer. In fact, Treasury Secretary Tim Geithner was on CNBC talking the debt ceiling this morning. Additionally, U.S. earnings season hits full stride this week. Major blue chips like Apple (Nasdaq: AAPL), Microsoft (Nasdaq: MSFT), GE (NYSE: GE), IBM (NYSE: IBM), Intel (Nasdaq: INTC) and McDonald's (NYSE: MCD) report second quarter earnings results this week. Along with the U.S. debt ceiling debate - and earnings results - will be the usual heap of economic data and the daily dose of European debt woes.

The market was red hot Tuesday, obliterated Wednesday and asleep Thursday. Yesterday's activity was mild compared to the action earlier in the week, however volume levels were still decent. The mild session was to be expected after the big decline a few days ago. The hangover from that decline kept most bulls on the sideline yesterday. It was also unlikely that sellers would be able to takeover our key target of 1301 support on the first try. As a result, very little was accomplished by either group (bull or bear) yesterday. Although one small victory for the bears was to temporarily take oil prices below $100.

The world’s second-largest computer trade show, Computex, is being held in Taipei, Taiwan this week. All eyes are focused on the new hot item – the tablet computer.
Apple (Nasdaq:AAPL) sold 1,000,000 of its iPad tablets the first weekend it was offered. It has sold around 25 million total. Sales of iPad tablets are so strong, that some analysts are cutting estimates for laptop computer sales.

Global sales of tablets is forecast to be in the 50 million range this year. But it’s mostly Apple that is benefiting. Motorola’s Xoom tablet, for instance, has only sold 250,000 units. (Yes, that’s thousands, compared to Apple’s millions).

While Apple may be winning the tablet sales war, investors should be looking to tablet component suppliers for other winning stocks. One chip company that has many tablet customers currently trades with a P/E of just 7.

This stock would need to move 17% higher just to reach its 52-week high. But when it reports blowout earnings coming in another few weeks, as expected to, it’s likely to move much higher. To discover the name of this stock and how to profit from the tech sector, CLICK HERE.

The discord in the Middle East has made some investors wary about putting money to work anywhere in the region, including Israel. But while the Arab world churns, Israel remains relatively stable and is a great place to find exciting technology companies.

The best thing is that many of these stocks pay dividends.