This week will be a roller coaster ride as a barrage of U.S. economic numbers roll out. The S&P closed lower today with no technical damage done perhaps as a result of a slip in pending home sales. Consumer Confidence numbers are due out tomorrow however we can expect that stocks, bonds and currencies will be range bound until the FOMC meeting. If Bernanke's testimony continues to be a repeat of his past song and dance without any negative interpretation by the markets we suspect more range bound activity into the monthly jobs numbers on Friday. With earnings season still in full swing individual stocks with numbers out this week will certainly march to the beat of their own drums, however all things considered the general stock market will remain overbought and trending higher until the "other shoe drops" and surprises traders and investors into a round of profit taking. Check out our weekly market forecast for our outlook on important support and resistance levels and possible turning points for U.S. and Canadian stocks, the bond market, currencies and commodities such as precious metals and oil. This market outlook is a great tool whether you are an experienced investor or would like begin to learn to trade the markets.
Traders and investors were cautious last week ahead of the ECB press conference that fell on the holiday Thursday as well as the monthly jobs numbers on the Friday. The S&P started pushing forward during the Thursday overnight session but paused and retraced briefly after the jobs numbers. That pullback was bought and to this point the bulls have been in charge. With this latest move forward the S&P is likely to continue higher for the near term....however we will be paying attention to the FED meeting this Wednesday and the uncertainty that always surrounds these economic events.