Coming Week: Holiday Cheer

With visions of bulls dancing in their heads, Wall Street traders expect the market's good cheer to continue in the coming week.

"It looks like the stampede to the upside is not quite over, even though the market is grossly overbought," says Randy Diamond, sales trader at Miller Tabak. "A reversal of trend could be two days or two weeks away, but with all of the performance chasing into year-end, it's too dangerous to pick a top."

The Dow Jones Industrial Average continued its march higher Friday after a Labor Department report that the November consumer price index was unchanged from the prior month, easing concerns about inflation. The blue-chip average finished at a record 12,445.52.

For all of last week, the Dow added 138 points, or 1.1%. The S&P 500 was higher by 17 points, or 1.2%, and the Nasdaq collected 20 points, or 0.8%, over the five sessions.

"It does not look like people are locking in gains and shutting down for the year yet. People are still buying stocks," says Brian Williamson, equity trader at Boston Company Asset Management. "It looks like that trend will continue into next week when we have some big economic numbers coming out."

Those big numbers include a key inflation report, housing data and durable goods orders before the market breaks for Santa.