All three major indexes advanced slightly more than two percent during the last week. The Dow had its best week in two months, and the S&P 500 is now 58 percent above its 12-year low, registered just six months ago. The market has profited from investor enthusiasm over low interest rates and data that increasingly points to economic recovery.

Next week, investors will be awaiting the report of the Federal Open Market Committee. They hope to hear, when the report is released on Wednesday afternoon, that the state of the economy continues to improve and that interest rates will remain at their near-zero levels.

Although economists are predicting that record low interest will continue into the third quarter of 2010, investors realize the need for banks to begin phasing out the monetary policies that were implemented to abate the worldwide financial crisis. Strategies for accomplishing that are expected to come to the table at the G20 summit beginning Thursday in Pittsburgh.

Also on Thursday, existing homes sales are forecast to continue to increase, rising to an annual rate of 5.35 million during August, compared to July’s figure of 5.24 million. On Friday, new home sales for August are expected to come in at an annual rate of 440,000, compared to July’s figure of 433,000. This would be the fifth consecutive monthly gain.

Data on August durable goods orders will be released on Friday, and these are expected to rise 0.5 percent.

Next week, as the third quarter winds down, the market may see fund managers switch some assets from cash and bonds to stocks.

8 Stocks to Watch

We have 8 stocks this week near daily resistance looking to break to new recent highs. The 8 stocks to watch are AmerisourceBergen Corp. (ABC), Automatic Data Processing (ADP), Janus Capital Group Inc. (JNS), Rowan Companies, Inc. (RDC), The Stanley Works (SWK), Time Warner Inc. (TWX), Ventas, Inc. (VTR), and Wyeth (WYE).

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