Jim Farrish, founder of Money Strategies, is a leading expert on sector investing; his approach combines technical and fundamental analysis within the framework of investor psychology.

In the latest from his SectorExchange.com, he says, "This week's spotlight is the energy sector with a focus on the current trend, what the outlook is and what strategy to take looking forward." Here's his latest, along with some ETFs to play this trend.

"Over the last six weeks, the financial media has warned that 'consumption will decline as a result of the US recession.' But so far we have not seen any slowdown in consumption and may not based on recent studies.

"In fact, we have seen China and India absorb any lack of consumption by the US. The key here is not so much who is right and who is wrong, but how you manage your own positions within the energy sector.

With the S&P 500 nearing a new all-time high, technical expert Larry McMillan assesses the road ahead. Here's his technical view, a look at market leadership, and some favored stocks.

"A new all-time closing high for the S&P 500 suggests that the all-time intra-day highs at 1552 are now the next key level within the context of this market cycle. The positive technical pattern of higher-highs and higher lows has continued.

"Sector leadership remains positive as the financial sector – as seen in the iShares Dow Jones U.S. Broker-Dealers Index Fund (ASE: IAI) and the iShares Dow Jones U.S. Financial Index Fund (ASE: IYF).

"Also positive has been the continued strength in the energy sector as seen in the iShares Dow Jones U.S. Energy Sector Fund (ASE: IYE) and the iShares Dow Jones U.S. Oil Services Trust (ASE: OIH).

"Therefore, sector leadership remains positive – and this should continue to inspire further gains in the major market indices as long as this trend remains in effect. Meanwhile, market breadth has recovered over the past few trading sessions.