The Strength of the Market is: Strong

Last week, the summer rally faltered as interest rate hike fears resurfaced, ending the week on a sour note - the S&P was lower by 1.21%, while the Dow Jones slipped 0.16% and the Nasdaq was down 2.62%. Comments released by the Federal Reserve indicated that they would likely continue hiking interest rates in the near term. Many investors and traders are holding out hope for a bounce back. Though, a pause in the stock market rally looks to have started. Economic reports from last week came back mostly negative: •Manufacturing (New York) - worse than expectation •Manufacturing (Philadelphia) - better than expectation •Homebuilder Sentiment - worse than expectation •New Residential Construction - worse than expectation •Existing Home Sales - worse than expectation •Jobless Claims - better than expectation This week, investors will look for guidance from economic reports like National Economic Activity, Housing, Manufacturing, Personal Income, Consumer Sentiment and Jobless Claims.