Next week could be critical in determining whether top stocks can maintain their momentum, at least for a while. The Dow Jones Industrial Average topped 42,000 this week for the first time, while the S&P 500 breached the 5,700 mark, after the Federal Reserve cut interest rates by half a percent. But the next few trading sessions could determine whether the big post-Fed rally could continue, especially as investors prepare for October – a historically weak period for equities that may be more volatile than usual due to the upcoming US presidential election. “A lot of it hangs in the balance for the next couple or days,” said Katie Stockton, founder of Fairlead Strategies. .SPX 5D mountain S & P 500 Friday, 30-share Dow, S & P 500 and Nasdaq Composite each closed more than 1% for the week. ‘Confirmation pending’ Now that the S&P 500 has passed resistance at 5,670, Fairlead Strategies’ Stockton said he is watching the level carefully over the next few days to see if the breakout can continue – despite some signs of fatigue. he paused. Breakout is “‘pending confirmation,'” Stockton said. “And confirmation is important to us, because usually there is nothing worse than an unconfirmed or fake breakout.” For the S&P 500, the confirmation would be a “good short-term development” suggesting the broader index could rise to 5,935 in the next three to eight weeks, he said. It is an increase of about 4% from the current level. The technician, who expects a seasonal correction in October, expects the confirmation to also reduce further pullbacks next month, while the damage could indicate a deeper one. “If we see the breakout confirmed, it will likely slow down the expected corrective phase,” Stockton said. “That’s not to say that we can’t see a pullback, but a correction in that 5000 range will be less likely because of a breakout, in my opinion.” Overall, Stockton expects that the long-term setup for the S&P 500 is “a bit overdone.” He expects the stock to be in a trading environment for the next nine months. The broader index ended up hovering around the 5,700 threshold. A softer, inflation-beating economic reading? At least on the calendar, it appears that stocks will have plenty to try to advance in the coming week, as a raft of economic reports are anticipated to show softer readings than before. Consumer confidence in September is expected to have weakened, to 102.9 from 103.3, according to FactSet. Durable orders, a measure of new orders for manufactured goods, are expected to fall 2.9% in August, compared with a 9.8% increase the previous month. “Most of the economic reports should show weakness over strength,” said Sam Stovall, chief investment strategist at CFRA Research. “So, I guess, that might cause some people to say, ‘Gee, maybe this is why we cut rates, because things look weaker.'” Investors can continue to look forward to good news on the inflation front. The August personal consumption price index due out on Friday is expected to show price pressures continuing to pull back from their highs. For investors, that can confirm that the Fed is right to shift its focus to the labor side of the mandate – with Fed Governor Christopher Waller on Friday saying that a stronger lower trend is behind the support of a half-percent rate cut at the last meeting. . In particular, Fed Chairman Jerome Powell at a press conference on Wednesday said that central bank economists expect PCE to rise by 2.2%. It was at 2.5% the previous month. “I think PCE will be the icing on the cake,” Stovall said. Sunday ahead of the calendar All times are ET. Monday, September 23 8:30 am Chicago Fed National Activity Index (August) 9:45 am PMI Composite preliminary (September) 9:45 am Markit PMI Manufacturing preliminary (September) 9:45 am Markit PMI Services preliminary (September) Tuesday, September 24 9 am FHFA Home Price Index (July) 9 am S & P/Case-Shiller comp.20 HPI (July) 10 am Consumer Confidence (September) 10 am Richmond Fed Index (September) Earnings: AutoZone Wednesday, Sept . 25 10 am New Home Sales (August) Earnings: Micron Technology Thursday, September 26 8:30 am Continued Jobless Claims (9/14) 8:30 am Durable Orders ex-Transportation (August) 8:30 am GDP (Q2 ) 8 :30 am Initial Claims (9/21) 10 am Pending Home Sales Index (August) 11 am Kansas City Fed Manufacturing Index (September) Earnings: Costco Wholesale , CarMax Friday, September 27 8:30 am PCE Deflator (August). ) 8:30 am Core PCE Deflator (August) 8:30 am Personal Consumption Expenditure (August) 8:30 am Personal Income (August) 8:30 am Wholesale Initial Inventories (August) 10 am Michigan Final Sentiment (September)