In an up-and-down week, all three major stock indexes managed to post gains. The S&P 500 will face strong resistance in the upcoming week as it closes in on the 1100 level. It has already failed to break through that level four times, and difficulty in passing that hurdle could stall upward momentum in the market.

The two largest home improvement chains, Lowe’s (LOW) and Home Depot (HD), will both release their third-quarter earnings during the week and are expected to report lower earnings, because of lower demand and fewer dollars for home remodeling projects.

Some major retailers will also release third-quarter statements during the week, but investors remain likely to concentrate on corporate outlooks for the fourth quarter.

On Monday, data is expected to show that October retail sales increased 0.9 percent after falling 1.5 percent in September. October housing starts and building permits will be announced and both forecast to show slight increases over the previous month.

On Tuesday, the Producer Price Index (PPI) is forecast to have risen 0.5 percent, compared to September’s figure of -0.6 percent. On Wednesday, the Consumer Price Index (CPI) is expected to show a gain of 0.2 percent, the same as September. These figures impact the Federal Reserve’s policy on low interest rates and are therefore of keen interest to investors.

On Monday, Federal Reserve Chairman Ben Bernanke will speak in New York, and Wall Street will take note of any hints that the federal government is developing an exit strategy for its support of the financial sector.

9 Stocks to Watch

We're watching nine stocks this week for potential breakouts. Our nine stocks on the watch list are the following:

Agilent Technologies Inc. (A)
Avon Products, Inc. (VP)
CenterPoint Energy, Inc. (CNP)
Cephalon, Inc. (CEPH)
Computer Sciences Corporation (CSC)
Constellation Brands, Inc. (STZ)
General Dynamics Corporation (GD)
Hospira, Inc. (HSP)
Raytheon Company (RTN)

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