The Week Ahead: Consumers put the brakes on spending in the 2nd quarter primarily because of high energy costs. Will this be enough to put the fed on hold with interest rates? Two key days to watch this week are Tuesday's personal income and construction spending for June along with July auto sales, and Friday's factory orders, chain store sales, and the widely anticipated July employment report which will significantly affect fed policy on August 8.

Stocks to Watch: This week's widely watched earnings reports come from AVP, ADM, EK, Q, MET, S, and VZ. Of these, Archer Daniels Midland (ADM), and Met Life (MET) offer the most short term upside potential on price charts. Watch Pfizer (PFE) as recent strength in the stock may pause but should continue as new CEO Jeffrey Kindler replaces Hank McKinnell. Finally, Becton Dickinson (BDX) looks to hit new all time highs on great earnings and increased 2006 guidance.

Special Note: The market appears to be discounting a fed pause in rate hikes with a rising trend that actually started on July 18. A continuation of this uptrend is likely near term. Regardless of the outcome on the interest rate decision, one noteworthy point with respect to the DJTA is that a negative divergence with the DJIA formed in terms of its recent price trend. This is not consistent with a sustainable rally in the major indexes, therefore traders should lock in profits as the market extends.

Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.