Where's the Pullback?: Coming Week

NEW YORK (TheStreet) -- September was supposed to be a terrible month for equities and -- surprise! -- the market has continually established new 2009 highs seemingly on a daily basis. Thus far, the big September pullback bears prophesized has yet to materialize.

But as sentiment begins to turn positive and the Dow Jones Industrial Average inches closer to the psychologically important 10000 level, market analysts warn bullish investors to tread carefully in the coming week. There are lots of economic reports and corporate events that could act as negative catalysts.

"Last week we had a great deal of economic data, most of it better than expected, but we didn't have the reaction that matched the magnitude of the good news," said Art Hogan, chief market strategist with Jefferies. "Next week we get another shot at that, but there's an overarching feeling that at some point in time we need to see a pullback in this market."

Jim Paulsen, chief investment strategist with Wells Capital Management, finds it problematic that a majority of traders were bullish heading into the weekend, especially with Dow 10,000 in reach, as it elevates the risk for a market correction.

"The conviction was so strong coming into this month that September would be horrible," Paulsen said. "Now there is shallow positive sentiment. You have people reluctantly saying the market could go higher, so after a bad day or two you might have them jumping off the boat. That puts us in the position to create a negative catalyst we can point to. Fundamentally, the news is better. But sentiment is waffling."