Coming Week: Building on Wells Fargo

Still, while market sentiment has certainly turned from negative to positive, it's far from certain that a similar economic rebound is under way. Consumers still face a weak job market and high debt loads and have seen household wealth and home values drop immensely over the past year.

"While there are some signs of what Federal Reserve Chairman Ben Bernanke termed 'green shoots' of spring in the economic recovery, there are no definitive signs of recovery in either the banking crisis or the economic downturn," PNC Chief Investment Strategist E. William Stone said in a note this week. "Some economic data ... have turned less negative, which is certainly welcome, but some portion of this so-called 'recovery' is due to the fact that numerically it was difficult for the data to get much worse."

The Federal Reserve will release its Beige Book of commentary on the economic situation in each region of the economy on Wednesday, perhaps giving a better sense of how communities are faring. A retail sales report on Tuesday will also reveal whether consumers kept purse strings tight in March, and price-index reports on Tuesday and Wednesday will tell whether deflation fears earlier in the economic crisis were unwarranted.

Reports on building permits and housing starts on Thursday will also indicate whether a rebound of sorts in the housing market has led builders to believe inventories have leveled out far enough to start building once again. Those reports will come on the same day as the closely scrutinized weekly jobless report, which has remained elevated.

Bob Auer, portfolio manager of the Auer Growth Fund, predicts that M&A activity could play into the market rally as well, with several of the stocks he owns climbing in double-digit percentages as takeover rumors emerged over the past week. Companies that were waiting on improved conditions in the credit markets and the economy to seize upon deals may be eager to acquire other firms before market values climb too high.

Auer also says the market has started to shift from a technical mentality back to one based on fundamentals. He believes the bad news has been priced in for too long, and that the bulls will continue to run the stock market next week, playing up positive reports and outlooks over anything negative.

"The market is past the disappointments," says Auer. "If somebody keeps slapping you in the face and slapping you in the face, it's just another slap. But then if they praise you and give you a compliment, you really start to shine."

1 What would best describe your stance heading into the coming week of trading? Bullish Bearish Neutral 2 Which of these sectors do you think is set to move up in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities 3 Which of these sectors do you think is set to move down in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities View the results without voting

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