Good Sunday morning, and welcome to another edition of Weekend Reading. First, a look back at the week that just finished, then a look forward to the week ahead, and, finally, a summary of articles and research papers worth reading.

It was the third straight up week on the markets, and, before Friday's selloff, it took the Nasdaq Composite back to flat on the year. The major indices have soared off the early-March lows, putting together the sort of double-digit 20% rally that we have seen rarely since the Great Depression. (See table below.) This sort of upward move is what I had been writing about for some time in this column, so it should come as no surprise that the relief rally has been as long and strong as it has.

Where do we go from here, however? While I'd been convinced we would penetrate the November lows and then see a relief rally, now we are at much more of a crossroads. It is possible that we follow a sawtooth pattern into the summer as we digest bad data at these levels. It is also possible that we slide backward into the recent lows, but that will almost certainly require bad news from the banks plus layoffs ticking up closer to the million-a-month level. The latter is entirely possible, of course, and the savageness of the relief rally shows how confident the bears had become that all stocks were one-way trades to zero.

For now, however, I'm remaining cautious. Having had a standout rally, we have a lot of data and gain digesting to do, and I suggest people watch this process instead of expecting further gains. News catalysts aside, we need to see the market become adept at shrugging off the bad before I become more convinced that things have permanently changed. More broadly, of course, nothing has changed on consumer balance sheets, so we should not be looking for there to be a recovery catalyst.

Turning to economic news, next week we have the G20 Summit (which will almost certainly be a disappointment), the March employment report and March service-sector data from ISM. March ADP employment data and the ISM's gauge of U.S. manufacturing are due on Wednesday. On Tuesday, we will see the January S&P/Case-Shiller home price index.

As for earnings, the first-quarter earnings season begins in another week, so take a brief break from earnings news.

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