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Asian markets closed mixed and European shares are falling. U.S. stock futures are pointing to a lower open.

After four straight days of stock market declines, should investors brace for another rough week this week? The market is likely to remain range-bound and volatile for the foreseeable future, torn between bears’ worries about the economy and bulls’ optimism over strong corporate balance sheets, Michael Purves, the chief global strategist and head of derivatives research at BGC Financial, wrote in a report last week. Purves dubbed this phenomenon a “wolf market” in which investors have to move quickly to find profits.

Corporate earnings have largely beaten expectations, but with earnings season over, investors are turning their attention to economic data, and it’s not encouraging, says Steven Roge, a portfolio manager at R.W. Roge & Company.

While employment always takes a while to pick up following a recession, at this point in a recovery, companies should be starting to hire, Roge says. The current level of unemployment isn’t “normal,” he adds. In this climate, Thursday’s weekly jobless claims reports are key; this Thursday, investors also will get an update on the index of leading indicators, a good data set to watch amid widespread concern over a double dip, Roge says.

Investors should pay close attention to any speeches or statements from Ben Bernanke, says Doug Roberts, the founder and chief investment strategist at Channel Capital Research. “You saw the market do a double take” in response to last week’s Fed statement because the idea of further quantitative easing is reassuring, but the lack of detail around exactly what form it will take leaves traders nervous, Roberts says. In the near term, uncertainty over the recovery is likely to continue, meaning that “there’s a lot of money to be made for very nimble traders, but for a lot of other people it’s going to be very frustrating,” he says.

This morning, traders will see the New York Fed’s Empire State Manufacturing Survey, due out at 8:30, and the National Association of Homebuilders’ Housing Market Index, due at 10.

Michael Purves Comments: The Volatility Watch Continues - SmartMoney.com

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