The Coming Week: Tough Test

A deluge of reports, including consumer confidence, employment and third-quarter economic growth, will either stoke or stop the market's recent rally in the coming week.

"It's all about the economic data next week," says Peter Cardillo, chief market analyst at S.W. Bach. "And we expect strong enough numbers to keep the end-of-year rally in full force."

The major averages enter next week at their best levels in four and a half years, pushed up in part by speculation about holiday retail sales. Traders say they expect indications on sales activity over the weekend to be one of Monday's major market movers. ...