For the fourth consecutive week, the major indexes closed higher. The Dow gained one percent for the week, the S&P 500 gained 0.6 percent, and the Nasdaq gained 0.9 percent. The indexes are now at their highest levels since September 2008.

With investor anxiety ebbing now that Washington has taken action on U.S. healthcare reform and the European Union has provided some relief to Greece, economists see the Dow moving to 11,000 in the coming week as a real possibility. But U.S. Treasury yields are now at nearly four percent, and the combination of high yields and low risk could lure investor money away from the equity market.

Economic reports for the coming week include, on Monday, personal income for February, expected to rise 0.1 percent, just as it did in January. On Tuesday, the Conference Board’s consumer confidence index number for March is expected to have climbed to 50, compared to the February figure of 46. The Case/Shiller home prices index, also a Tuesday release, is expected to show that home prices have fallen in January by 0.7 percent, compared to the same month one year ago. In December prices fell 3.1 percent.

On Thursday, the Institute of Supply Management’s report on U.S. manufacturing is expected to show that the March reading will have advanced to 56.8, compared to the February reading of 56.5. Thursday will also bring the weekly initial unemployment claims, forecast to have fallen by 2000 from the previous week. The unemployment rate is expected to remain at 9.7 percent.

The non-farm payrolls report, to be released on Friday, is predicted to show that the economy created 190,000 jobs in March. But the market will be closed in observance of Good Friday, and investors will have to wait until Monday to react.

Five Stocks to Watch

We're watching five stocks for possible breakout this week. The five stocks are the following:

Avon Products, Inc. (AVP)
Coach, Inc. (COH)
RTI International Metals, Inc. (RTI)
Signet Jewelers Ltd. (SIG)
SPX Corporation (SPW)

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