Four weeks of gains for the stock market came to a halt last week. All three major indexes suffered losses on Friday and showed a slight decline for the week. The University of Michigan's consumer sentiment index, anticipated to rise from July's 66, instead fell to 63.2. The July retail sales figures also declined. Investors are now looking to factors such as consumer spending to be supportive of the market since the better-than-expected news of earnings season is nearly over.

A small number of companies have yet to report their second quarter earnings. Among them is Hewlett Packard (HPQ), and investors will look for any suggestions that consumer demand and corporate spending are both picking up. Similar positive signs from the two largest home improvement retailers, Lowe's Companies (LOW)and Home Depot (HD), also set to report next week, could further improve investor confidence.

Another area to which investors will look for confirmation that the economy is beginning to heal itself is the housing market. On Monday, the National Association of Homebuilders index for August will be released. That will be followed by data on housing starts on Tuesday and by existing home sales for July on Friday. Recent housing figures have been trending upward slightly, and the market can only benefit from additional positive data.

Other economic data to be released next week include Monday’s Federal Reserve survey of manufacturing activity and Tuesday’s Labor Department producer price index.

On Friday, Federal Reserve Chairman Ben Bernanke will speak on “Reflections on a Year of Crisis.” Economists do not expect to learn anything that will point to accelerated growth, but investors, keenly aware of the high unemployment rate and its impact on consumer spending, will be hoping for any news that will push the market to revive its uptrend.

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7 Stocks to Watch

We have seven stocks this week at daily resistance looking to break to new highs. Those seven stocks to watch are Comerica Incorporated (CMA), HCP, Inc. (HCP), Kimberly-Clark Corporation (KMB), National Semiconductor Corporation (NSM), Northeast Utilities System (NU), Schering-Plough Corporation (SGP), and XL Capital Ltd. (XL).

Dave Mecklenburg is the Editor-in-Chief of TigerSharkTrading.com.