Afghan policewoman kills coalition contractor in Kabul: NATO


KABUL (Reuters) - An Afghan woman wearing a police uniform shot dead on Monday a civilian contractor working for Western forces in the police chief's compound in Kabul, NATO said.


The incident is likely to raise troubling questions about the direction of an unpopular war.


It appeared to be the first time that a woman member of Afghanistan's security forces carried out such an attack.


There were conflicting reports about the victim.


A spokesman for the NATO-led International Security Assistance Force (ISAF) said a U.S. police adviser was killed by an Afghan policewoman. Then ISAF said in a statement only that it was a "contracted civilian employee" who was killed.


Mohammad Zahir, head of the police criminal investigation department, described the incident as an "insider attack" in which Afghan forces turn their weapons on Western troops they are supposed to be working with. He initially said the victim was a U.S. soldier.


After more than 10 years of war, militants are capable of striking Western targets in the heart of the capital, and foreign forces worry that Afghan police and military forces they are supposed to work with can suddenly turn on them.


The policewoman approached her victim as he was walking in the heavily guarded police chief's compound in a bustling area of Kabul. She then drew a pistol and shot him once, a senior police official told Reuters.


The police complex is close to the Interior Ministry where in February, two American officers were shot dead at close range at a time anger gripped the country over the burning of copies of the Muslim holy book at a NATO base.


"She is now under interrogation. She is crying and saying 'what have I done'," said the official, of the police officer who worked in a section of the Interior Ministry responsible for gender awareness issues.


TIPS FOR TROOPS


The insider incidents, also known as green-on-blue attacks, have undermined trust between coalition and Afghan forces who are under mounting pressure to contain the Taliban insurgency before most NATO combat troops withdraw by the end of 2014.


Security responsibilities in a country plagued by conflict for decades will be handed to Afghan security forces.


Many Afghans fear a civil war like one dominated by warlords after the withdrawal of Soviet occupying forces in 1989 could erupt again, or the Taliban will make another push to seize power if they reject a nascent peace process.


At least 52 members of the NATO-led International Security Assistance Force have been killed this year by Afghans wearing police or army uniforms.


Insider attacks now account for one in every five combat deaths suffered by NATO-led forces in Afghanistan, and 16 percent of all U.S. combat casualties, according to 2012 data.


Hoping to stop the increase in the attacks, Afghan Defense Ministry officials have given their troops tips in foreign culture.


They are told not to be offended by a hearty pat on the back or an American soldier asking after your wife's health.


NATO attributes only about a quarter of the attacks to the Taliban, saying the rest are caused by personal grievances and misunderstandings. Last year, there were 35 deaths in such attacks.


(Writing by Michael Georgy; Editing by Robert Birsel)



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Saudi website editor could face death for apostasy-rights group






RIYADH (Reuters) – The editor of a Saudi Arabian website could be sentenced to death after a judge cited him for apostasy and moved his case to a higher court, the monitoring group Human Rights Watch said on Saturday.


Raif Badawi, who started the Free Saudi Liberals website to discuss the role of religion in Saudi Arabia, was arrested in June, Human Rights Watch said.






Badawi had initially been charged with the less serious offence of insulting Islam through electronic channels, but at a December 17 hearing a judge referred him to a more senior court and recommended he be tried for apostasy, the monitoring group said.


Apostasy, the act of changing religious affiliation, carries an automatic death sentence in Saudi Arabia, along with crimes including blasphemy.


Badawi’s website included articles that were critical of senior religious figures, the monitoring group said.


A spokesman for Saudi Arabia’s Justice Ministry was not available to comment.


The world’s top oil exporter follows the strict Wahhabi school of Islam and applies Islamic law, or sharia.


Judges base their decisions on their own interpretation of religious law rather than on a written legal code or on precedent.


King Abdullah, Saudi Arabia’s ruler, has pushed for reforms to the legal system, including improved training for judges and the introduction of precedent to standardize verdicts and make courts more transparent.


However, Saudi lawyers say that conservatives in the Justice Ministry and the judiciary have resisted implementing many of the changes that he announced in 2007. (Reporting By Angus McDowall; Editing by Kevin Liffey)


Internet News Headlines – Yahoo! News





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Bethenny Frankel Separates From Husband of 2 Years

After two years of marriage, TV personality Bethenny Frankel and husband Jason Hoppy are separating.

"'It brings me great sadness to say that Jason and I are separating. This was an extremely difficult decision that as a woman and a mother, I have to accept as the best choice for our family. We have love and respect for one another and will continue to amicably co-parent our daughter who is and will always remain our first priority. This is an immensely painful and heartbreaking time for us," the former Real Housewives of New York City star's rep said in a statement.

Frankel, 42, also tweeted: "I am heartbroken. I am sad. We will work through this as a family."

In 2010, the couple were married and had their daughter, Bryn. Frankel and Hoppy's relationship was then documented in two reality TV shows, Bethenny Getting Married? and Bethenny Ever After...

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Predicting who's at risk for violence isn't easy


CHICAGO (AP) — It happened after Columbine, Virginia Tech, Aurora, Colo., and now Sandy Hook: People figure there surely were signs of impending violence. But experts say predicting who will be the next mass shooter is virtually impossible — partly because as commonplace as these calamities seem, they are relatively rare crimes.


Still, a combination of risk factors in troubled kids or adults including drug use and easy access to guns can increase the likelihood of violence, experts say.


But warning signs "only become crystal clear in the aftermath, said James Alan Fox, a Northeastern University criminology professor who has studied and written about mass killings.


"They're yellow flags. They only become red flags once the blood is spilled," he said.


Whether 20-year-old Adam Lanza, who used his mother's guns to kill her and then 20 children and six adults at their Connecticut school, made any hints about his plans isn't publicly known.


Fox said that sometimes, in the days, weeks or months preceding their crimes, mass murderers voice threats, or hints, either verbally or in writing, things like "'don't come to school tomorrow,'" or "'they're going to be sorry for mistreating me.'" Some prepare by target practicing, and plan their clothing "as well as their arsenal." (Police said Lanza went to shooting ranges with his mother in the past but not in the last six months.)


Although words might indicate a grudge, they don't necessarily mean violence will follow. And, of course, most who threaten never act, Fox said.


Even so, experts say threats of violence from troubled teens and young adults should be taken seriously and parents should attempt to get them a mental health evaluation and treatment if needed.


"In general, the police are unlikely to be able to do anything unless and until a crime has been committed," said Dr. Paul Appelbaum, a Columbia University professor of psychiatry, medicine and law. "Calling the police to confront a troubled teen has often led to tragedy."


The American Academy of Child & Adolescent Psychiatry says violent behavior should not be dismissed as "just a phase they're going through."


In a guidelines for families, the academy lists several risk factors for violence, including:


—Previous violent or aggressive behavior


—Being a victim of physical or sexual abuse


—Guns in the home


—Use of drugs or alcohol


—Brain damage from a head injury


Those with several of these risk factors should be evaluated by a mental health expert if they also show certain behaviors, including intense anger, frequent temper outbursts, extreme irritability or impulsiveness, the academy says. They may be more likely than others to become violent, although that doesn't mean they're at risk for the kind of violence that happened in Newtown, Conn.


Lanza, the Connecticut shooter, was socially withdrawn and awkward, and has been said to have had Asperger's disorder, a mild form of autism that has no clear connection with violence.


Autism experts and advocacy groups have complained that Asperger's is being unfairly blamed for the shootings, and say people with the disorder are much more likely to be victims of bullying and violence by others.


According to a research review published this year in Annals of General Psychiatry, most people with Asperger's who commit violent crimes have serious, often undiagnosed mental problems. That includes bipolar disorder, depression and personality disorders. It's not publicly known if Lanza had any of these, which in severe cases can include delusions and other psychotic symptoms.


Young adulthood is when psychotic illnesses typically emerge, and Appelbaum said there are several signs that a troubled teen or young adult might be heading in that direction: isolating themselves from friends and peers, spending long periods alone in their rooms, plummeting grades if they're still in school and expressing disturbing thoughts or fears that others are trying to hurt them.


Appelbaum said the most agonizing calls he gets are from parents whose children are descending into severe mental illness but who deny they are sick and refuse to go for treatment.


And in the case of adults, forcing them into treatment is difficult and dependent on laws that vary by state.


All states have laws that allow some form of court-ordered treatment, typically in a hospital for people considered a danger to themselves or others. Connecticut is among a handful with no option for court-ordered treatment in a less restrictive community setting, said Kristina Ragosta, an attorney with the Treatment Advocacy Center, a national group that advocates better access to mental health treatment.


Lanza's medical records haven't been publicly disclosed and authorities haven't said if it is known what type of treatment his family may have sought for him. Lanza killed himself at the school.


Jennifer Hoff of Mission Viejo, Calif. has a 19-year-old bipolar son who has had hallucinations, delusions and violent behavior for years. When he was younger and threatened to harm himself, she'd call 911 and leave the door unlocked for paramedics, who'd take him to a hospital for inpatient mental care.


Now that he's an adult, she said he has refused medication, left home, and authorities have indicated he can't be forced into treatment unless he harms himself — or commits a violent crime and is imprisoned. Hoff thinks prison is where he's headed — he's in jail, charged in an unarmed bank robbery.


___


Online:


American Academy of Child & Adolescent Psychiatry: http://www.aacap.org


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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World shares, dollar steady in holiday lull

LONDON (Reuters) - World stock, commodity and currency markets were steady on Monday, as the holiday lull set in across markets and offset tensions over the U.S. budget dispute.


With only UK, French, Dutch and Spanish stock markets open in Europe and trading shortened ahead of Christmas celebrations, the FTSEurofirst300 <.fteu3> opened almost flat at 1138.35 points to leave the MSCI index of global stocks <.miwd00000pus> virtually unchanged at 339.87.


Activity in other assets was also subdued, with spot gold steadying as investors took to the sidelines, while Brent oil eased 0.3 percent to $108.63.


Financial markets are also in limbo over $600 billion of U.S. spending cuts and tax hikes that kick in next month and threaten to hurt the economy. Lawmakers and President Barack Obama have abandoned talks to prevent this "fiscal cliff" until after Christmas.


"It's all about the U.S. fiscal cliff issue," said Victor Shum, managing director at IHS Purvin & Gertz.


"The chances are that we will get a deal between the White House and the Republicans, but the fact that (House of Representatives speaker John) Boehner failed to get members to support his plan is worrying."


In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> inched up 0.1 percent in thin trading after falling to a near two-week low on Friday.


Japanese financial markets are closed for a public holiday and will resume trading on Tuesday. Most European bond markets were also shut.


In the currency market, the dollar eased 0.1 percent versus a basket of major currencies, while the euro was steady at around $1.3196.


The yen, however, neared a 20-month low versus the dollar after incoming premier Shinzo Abe renewed pressure over the weekend on the Bank of Japan to adopt a 2 percent inflation target.


(Additional reporting by Masayuki Kitano and Manash Goswami in Singapore; Editing by Anna Willard)



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Israel says Syria chemical weapons are secure for now


JERUSALEM (Reuters) - Syria's chemical weapons are still secure despite the fact that President Bashar al-Assad has lost control of parts of the country, a senior Israeli defense official said on Sunday.


Amos Gilad told Army Radio that the civil war between Assad and opposition forces fighting to topple him had become deadlocked, but that the Syrian leader showed no signs of heeding international calls to step down.


"Suppose he (Assad) does leave, there could be chaos ... in the Middle East you never know who will come instead. We need to stay level-headed; the entire world is dealing with this. At the moment, chemical weapons are under control," Gilad said.


As Syria's southern neighbor, Israel has been concerned about chemical weapons falling into the hands of Islamist militants or Lebanese Hezbollah fighters, warning it could intervene to stop such developments.


Western countries said three weeks ago that Assad's government might be preparing to use poison gas to repel rebel fighters who are encamped around Damascus, the capital, and who control rural Aleppo and Idlib in the north.


"The opposition is not managing to defeat him and he is not defeating the opposition, though more and more parts of Syria are no longer under his control and that is what matters," Gilad said.


The rebels - mainly Sunni Muslims - are pushing southwards from their northern strongholds into the central province of Hama.


But Assad, who is from the Alawite minority linked to Shi'ite Islam, has responded with artillery, air strikes and, according to NATO, with Scud-type missiles.


Western powers and some Arab countries have called for Assad to step down, but Russia's Foreign Minister Sergei Lavrov said on Saturday that international efforts to persuade Assad to quit would fail.


Lavrov said Russia had rejected requests from countries in the region to pressure Assad to go or to offer him safe haven. If Assad did exit the political scene, it could lead to an upsurge in the fighting that activists say has killed 44,000 people since the uprising began in March 2011, Lavrov said.


(Writing by Maayan Lubell; Editing by Jeffrey Heller and Andrew Osborn)



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North Korea’s first video game: A boring version of ‘Crazy Taxi’ that nitpicks your bad driving






In theory, a driving game set in North Korea could be fun — it could revolve around delivering kidnapped movie stars from the airport to Dear Leader’s headquarters, for instance. In reality, though, it looks as though playing a driving game set in North Korea is about as much fun as actually living in North Korea. Business Insider’s Gus Lubin has posted his first impressions of “Welcome to Pyongyang,” an online game that’s “produced by Nosotek, a western IT company based in North Korea,” and he’s found that it’s pretty lame.


[More from BGR: Years after cashing out, MySpace cofounder mocks people who work for a living]






The goal of the game is to drive around the North Korean capital of Pyongyang and become familiar with all the great tourist attractions it has to offer. But unlike action-driving classics such as Crazy Taxi and the Grand Theft Auto series, Welcome to Pyongyang is annoyingly authoritarian and won’t put up with you crashing into cars or mowing down civilians. To make matters worse, the game doesn’t even give you the satisfaction dying at the hands of bloody-minded authorities if you break the rules too often — rather, it sends out a fascistic meter maid to simply tell you that you have been “stopped for bad driving.” We’re not sure what the actual penalty is for reckless is in North Korea, but we get the feeling it’s more severe than getting nitpicked by an annoying digital character.


This article was originally published by BGR


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Buzzmakers: New X Factor and Miss Universe Winners

What had ET readers buzzing this week?

1. 'The X Factor' Crowns A Winner!

And the $5 million recording contract goes to…

Tate Stevens! The 37-year-old country crooner beat out runner-up 13-year-old Carly Rose Sonenclar for the top prize Thursday night. 35 million votes were cast Wednesday to determine victory for L.A. Reid's mentee.

Near tears, the Raymore, Missouri native thanked his fans for their overwhelming support.

"This is the best day of my life," said an emotional Stevens.

Girl group Fifth Harmony, mentored by Simon Cowell, placed third in the competition. Earlier in the night, the holiday themed finale saw performances by One Direction and Pitbull.

Auditions for an all-new season of The X Factor USA have already begun online. In-person auditions will start on March 6, 2013 in Los Angeles.

The celebrity judging panel has yet to be announced, but L.A. Reid has already taken himself out of the running. Spears has expressed interest in returning to the show for season three, but nothing has been confirmed.

2. Miss Universe 2012 Crowned

Beauties from 89 countries strutted their stuff Wednesday night in pursuit of the Miss Universe crown, but only one woman would earn the coveted title.

In the end a panel of ten celebrity judges, including Cee Lo Green and U.S. Olympic gold medalist Kerri Walsh Jennings, appointed Miss USA Olivia Culpo the winner.

The 20-year-old Rhode Island native beat out Miss Brazil (Gabriela Markus) Miss Philippines (Janine Tugonon), Miss Mexico (Irene SofĂ­a Esser Quintero), and Miss Australia (Renae Ayris) for the distinction.

Culpo follows in the footsteps of Miss Angola, Leila Lopes, who earned the crown in 2011.

The two-hour show was broadcast live from Las Vegas with musical acts One Direction and Train lending their talents to the annual extravaganza.

3. Exclusive: Arsenio on His Late Night TV Return

Break out the Woof! Woof! fist pump: Arsenio Hall is coming back to late night TV in the Fall of 2013 after a 17-year break from the game, and only ET is behind the scenes with the timeless talk show host as he shoots his first-ever promo for The Arsenio Hall Show!

"[This is] the first time America will see anything on television about the show," says Arsenio. "Instead of a commercial where I do something like say, 'I'm baaaaack' -- and everybody's, 'Ugh' -- they've come up with a real, unique, creative angle that -- actually, I looked at dailies, and it scared me. I looked at the dailies and I frightened myself."

The trailer-length promo from CBS Television Distribution pays homage to horror movies and begins airing today on all Arsenio Hall Show affiliate stations, kicking off the campaign for the new late night syndicated talk show that will be seen all across the country next year.

"I'm real excited about this; so many things have changed in pop culture since I left the air," says Arsenio about his return to late night. "I can't wait."

The Arsenio Hall Show premieres on 9/9/13. Look for much more with Arsenio between now and then, only on ET!

4. Claire Danes Gives Birth

It's a boy!

Homeland star Claire Danes and her husband Hugh Dancy welcomed their very first child together on Monday, December 17, her rep confirms to People Magazine.

The proud parents named their bouncing baby boy Cyrus Michael Christopher Dancy.

Danes, 33, wed Dancy, 37, in 2009 after two years of dating.

5. President Obama is Time's Person of the Year

For 2012, Time Magazine has selected President Barack Obama as their Person of the Year.

"For finding and forging a new majority, for turning weakness into opportunity and for seeking, amid great adversity, to create a more perfect union, Barack Obama is Time's 2012 Person of the Year," Time's Managing Editor Richzard Stengel explained.

He also cited both of the president's re-elections, snagging over 50 percent of the popular vote, as one reason he received this honor.

This is the second year Time has tapped Obama as their Person of the Year -- he previously was selected in 2008 for becoming the first black president of the United States.

Time previously named the eight finalists for 2012's Person of the Year. They included: Bill and Hillary Clinton, Apple CEO Tim Cook, Malala Yousafzai (the Pakistani girl who was shot by the Taliban for her crusade for better girls' education), Yahoo! CEO Marissa Mayer, Egyptian president Mohamed Morsi and the three scientists who discovered the Higgs Boson particle.

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Predicting who's at risk for violence isn't easy


CHICAGO (AP) — It happened after Columbine, Virginia Tech, Aurora, Colo., and now Sandy Hook: People figure there surely were signs of impending violence. But experts say predicting who will be the next mass shooter is virtually impossible — partly because as commonplace as these calamities seem, they are relatively rare crimes.


Still, a combination of risk factors in troubled kids or adults including drug use and easy access to guns can increase the likelihood of violence, experts say.


But warning signs "only become crystal clear in the aftermath, said James Alan Fox, a Northeastern University criminology professor who has studied and written about mass killings.


"They're yellow flags. They only become red flags once the blood is spilled," he said.


Whether 20-year-old Adam Lanza, who used his mother's guns to kill her and then 20 children and six adults at their Connecticut school, made any hints about his plans isn't publicly known.


Fox said that sometimes, in the days, weeks or months preceding their crimes, mass murderers voice threats, or hints, either verbally or in writing, things like "'don't come to school tomorrow,'" or "'they're going to be sorry for mistreating me.'" Some prepare by target practicing, and plan their clothing "as well as their arsenal." (Police said Lanza went to shooting ranges with his mother in the past but not in the last six months.)


Although words might indicate a grudge, they don't necessarily mean violence will follow. And, of course, most who threaten never act, Fox said.


Even so, experts say threats of violence from troubled teens and young adults should be taken seriously and parents should attempt to get them a mental health evaluation and treatment if needed.


"In general, the police are unlikely to be able to do anything unless and until a crime has been committed," said Dr. Paul Appelbaum, a Columbia University professor of psychiatry, medicine and law. "Calling the police to confront a troubled teen has often led to tragedy."


The American Academy of Child & Adolescent Psychiatry says violent behavior should not be dismissed as "just a phase they're going through."


In a guidelines for families, the academy lists several risk factors for violence, including:


—Previous violent or aggressive behavior


—Being a victim of physical or sexual abuse


—Guns in the home


—Use of drugs or alcohol


—Brain damage from a head injury


Those with several of these risk factors should be evaluated by a mental health expert if they also show certain behaviors, including intense anger, frequent temper outbursts, extreme irritability or impulsiveness, the academy says. They may be more likely than others to become violent, although that doesn't mean they're at risk for the kind of violence that happened in Newtown, Conn.


Lanza, the Connecticut shooter, was socially withdrawn and awkward, and has been said to have had Asperger's disorder, a mild form of autism that has no clear connection with violence.


Autism experts and advocacy groups have complained that Asperger's is being unfairly blamed for the shootings, and say people with the disorder are much more likely to be victims of bullying and violence by others.


According to a research review published this year in Annals of General Psychiatry, most people with Asperger's who commit violent crimes have serious, often undiagnosed mental problems. That includes bipolar disorder, depression and personality disorders. It's not publicly known if Lanza had any of these, which in severe cases can include delusions and other psychotic symptoms.


Young adulthood is when psychotic illnesses typically emerge, and Appelbaum said there are several signs that a troubled teen or young adult might be heading in that direction: isolating themselves from friends and peers, spending long periods alone in their rooms, plummeting grades if they're still in school and expressing disturbing thoughts or fears that others are trying to hurt them.


Appelbaum said the most agonizing calls he gets are from parents whose children are descending into severe mental illness but who deny they are sick and refuse to go for treatment.


And in the case of adults, forcing them into treatment is difficult and dependent on laws that vary by state.


All states have laws that allow some form of court-ordered treatment, typically in a hospital for people considered a danger to themselves or others. Connecticut is among a handful with no option for court-ordered treatment in a less restrictive community setting, said Kristina Ragosta, an attorney with the Treatment Advocacy Center, a national group that advocates better access to mental health treatment.


Lanza's medical records haven't been publicly disclosed and authorities haven't said if it is known what type of treatment his family may have sought for him. Lanza killed himself at the school.


Jennifer Hoff of Mission Viejo, Calif. has a 19-year-old bipolar son who has had hallucinations, delusions and violent behavior for years. When he was younger and threatened to harm himself, she'd call 911 and leave the door unlocked for paramedics, who'd take him to a hospital for inpatient mental care.


Now that he's an adult, she said he has refused medication, left home, and authorities have indicated he can't be forced into treatment unless he harms himself — or commits a violent crime and is imprisoned. Hoff thinks prison is where he's headed — he's in jail, charged in an unarmed bank robbery.


___


Online:


American Academy of Child & Adolescent Psychiatry: http://www.aacap.org


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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Wall Street Week Ahead: A lump of coal for "Fiscal Cliff-mas"

NEW YORK (Reuters) - Wall Street traders are going to have to pack their tablets and work computers in their holiday luggage after all.


A traditionally quiet week could become hellish for traders as politicians in Washington are likely to fall short of an agreement to deal with $600 billion in tax hikes and spending cuts due to kick in early next year. Many economists forecast that this "fiscal cliff" will push the economy into recession.


Thursday's debacle in the U.S. House of Representatives, where Speaker John Boehner failed to secure passage of his own bill that was meant to pressure President Obama and Senate Democrats, only added to worry that the protracted budget talks will stretch into 2013.


Still, the market remains resilient. Friday's decline on Wall Street, triggered by Boehner's fiasco, was not enough to prevent the S&P 500 from posting its best week in four.


"The markets have been sort of taking this in stride," said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. in Chicago, which has about $38 billion in assets under management.


"The markets still basically believe that something will be done," he said.


If something happens next week, it will come in a short time frame. Markets will be open for a half-day on Christmas Eve, when Congress will not be in session, and will close on Tuesday for Christmas. Wall Street will resume regular stock trading on Wednesday, but volume is expected to be light throughout the rest of the week with scores of market participants away on a holiday break.


For the week, the three major U.S. stock indexes posted gains, with the Dow Jones industrial average <.dji> up 0.4 percent, the S&P 500 <.spx> up 1.2 percent and the Nasdaq Composite Index <.ixic> up 1.7 percent.


Stocks also have booked solid gains for the year so far, with just five trading sessions left in 2012: The Dow has advanced 8 percent, while the S&P 500 has climbed 13.7 percent and the Nasdaq has jumped 16 percent.


IT COULD GET A LITTLE CRAZY


Equity volumes are expected to fall sharply next week. Last year, daily volume on each of the last five trading days dropped on average by about 49 percent, compared with the rest of 2011 - to just over 4 billion shares a day exchanging hands on the New York Stock Exchange, the Nasdaq and NYSE MKT in the final five sessions of the year from a 2011 daily average of 7.9 billion.


If the trend repeats, low volumes could generate a spike in volatility as traders keep track of any advance in the cliff talks in Washington.


"I'm guessing it's going to be a low volume week. There's not a whole lot other than the fiscal cliff that is going to continue to take the headlines," said Joe Bell, senior equity analyst at Schaeffer's Investment Research, in Cincinnati.


"A lot of people already have a foot out the door, and with the possibility of some market-moving news, you get the possibility of increased volatility."


Economic data would have to be way off the mark to move markets next week. But if the recent trend of better-than-expected economic data holds, stocks will have strong fundamental support that could prevent selling from getting overextended even as the fiscal cliff negotiations grind along.


Small and mid-cap stocks have outperformed their larger peers in the last couple of months, indicating a shift in investor sentiment toward the U.S. economy. The S&P MidCap 400 Index <.mid> overcame a technical level by confirming its close above 1,000 for a second week.


"We view the outperformance of the mid-caps and the break of that level as a strong sign for the overall market," Schaeffer's Bell said.


"Whenever you have flight to risk, it shows investors are beginning to have more of a risk appetite."


Evidence of that shift could be a spike in shares in the defense sector, expected to take a hit as defense spending is a key component of the budget talks.


The PHLX defense sector index <.dfx> hit a historic high on Thursday, and far outperformed the market on Friday with a dip of just 0.26 percent, while the three major U.S. stock indexes finished the day down about 1 percent.


Following a half-day on Wall Street on Monday ahead of the Christmas holiday, Wednesday will bring the S&P/Case-Shiller Home Price Index. It is expected to show a ninth-straight month of gains.


U.S. jobless claims on Thursday are seen roughly in line with the previous week's level, with the forecast at 360,000 new filings for unemployment insurance, compared with the previous week's 361,000.


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: rodrigo.campos(at)thomsonreuters.com)


(Reporting by Rodrigo Campos; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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