All three major indexes closed on Friday showing slight gains for the week. Those gains came with low volume, but with the support of the last few positive second quarter earnings reports and optimism over data revealing new home sales rising at a rate faster than in any other month during the last year.

Next week, the market heads into the last week of August with low volume expected to continue, and with investors still worried about the consumers’ ability to spur the economic recovery, considering the massive debt they are carrying and their apprehension over job security.

Unemployment continues to plague the prospect of recovery. Friday’s non-farm payrolls report is forecast to reveal a loss of 225,000 jobs in August, an improvement over July’s 2247,000 job losses. But the unemployment rate is expected to increase to 9.5 percent, and five million Americans remain unemployed.

On Tuesday, the Institute for Supply Management will release its manufacturing index for August. Economists expect the figure to improve for the eighth consecutive month and to come in at 50.5, compared to July’s 48.9. Any number over 50 is indicative of economic expansion and will bode well for the markets.

Other Tuesday data will be less encouraging. Pending home sales for July are expected to rise by 1.6 percent, but that figure is lower than June’s 3.6 percent. U.S. auto sales figures will reveal the largest increase in 20 months, but those sales were bolstered by government incentives, now ended, to trade in clunkers. And the Census Bureau will release July construction spending data, forecast to show a slight decrease and to be below June’s figures.

On Wednesday, the Department of Commerce will report on July factory orders. That data is expected to show an increase of over two percent compared to orders for June. On Thursday, the weekly initial unemployment claims will remain near their average for the last four weeks.

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6 Stocks to Watch

We have 6 stocks this week at daily resistance looking to break to new highs. Those 6 stocks to watch are Altera Corporation (ALTR), Assurant, Inc. (AIZ), The Chubb Corporation (CB), M&T Bank Corporation (MTB), Viacom, Inc. (VIA), and Zions Bancorporation (ZION).

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