The Strength of the Market is: Weak
Another volatile week on Wall Street ended on a high note. Market gains for the week were the best since June as the S&P 500 gained 4.7%, Dow Jones was up 4.9% and the Nasdaq rose 5.2%. This much needed bounce doesn't necessarily mean it will continue, though. A sustained bounce, at this point, seems contingent on the Federal Reserve pausing their aggressive interest rate hikes - which, on Friday morning, the Wall Street Journal reported that some Federal Reserve officials are becoming concerned that they may be over doing it with interest rate increases, giving stocks a boost as last week ended.
Economic reports from last week came back mixed: •Manufacturing (New York) - lower than expectation •Manufacturing (Philadelphia) - lower than expectation •Homebuilder Sentiment - lower than expectation •New Residential Construction - higher than expectation •Existing Home Sales - higher than expectation •Jobless Claims - lower than expectation This week, investors will look for guidance from economic reports like National Economic Activity, Single-Family Home Values, New & Pending Home Sales, Consumer Confidence & Sentiment, Manufacturing, Personal Income and Jobless Claims.