Traders will eye Q2 earnings releases more critically with Fed to cut easing.

This week, US stocks could test record highs if Alcoa, JP Morgan and others can prove there's such a thing as life after quantitative easing for the US economy.

For much of the spring and summer, the Federal Reserve's perception of data and earnings has been more important than the reality. That's why strong consumer spending reports have sometimes prompted sell offs and weak jobs data sometimes inspired rallies. Now that a "tapering" of bond purchases beginning in September is baked into share prices, the market has become more responsive to the quality of the data itself.

That's why Friday's report that the US jobs market was growing steadily caused unequivocal celebration among the bulls.

Source AmFraser