Energy sector rotation appears underway as oil services (OIH, SLB) and commodity plays gain traction amid geopolitical supply concerns, potentially offering opportunities for investors who've been underweight energy.
Watch for earnings volatility in financials as multiple banks report this week with analysts already adjusting expectations - this could either validate the sector's recent strength or trigger profit-taking if results disappoint.
Key risk to monitor: oil price volatility could spill over into broader markets if Iran tensions escalate further, particularly impacting inflation-sensitive sectors and Fed policy expectations.