With the S&P closing solidly higher on Friday and the Dow surging by triple digits, are bulls back in the driver's seat?

That’s the question investors struggled with as they looked for new clues that might suggest the market’s direction.

And the answer may come from Intel. The tech titan closed higher on lower guidance. (Intel cut its forecast on weaker-than-expected demand for personal computers.)

Strategic investor Doug Kass of Seabreeze tells us the action in Intel is a “huge and positive tell. Remember it's how stocks react to negative news that is more important than the news itself,” he says.

And Intel is not the only stock fighting higher in the face of bad news. Despite a double whammy of dismal existing and new home sales data the homebuilders closed up on the week.

How should you position now?