"If this gets held up … then tax reform gets pushed out to next year, and that's not priced in. If you get that agenda item behind them, then you know you can start moving on tax reform and deregulation and that seems to be the line up," said Art Hogan, chief market strategist at Wunderlich Securities.
The economic calendar is light in the week ahead, though there are durable goods on Friday and housing data on Wednesday and Thursday. There are also more than a half dozen Fed speakers including Fed Chair Janet Yellen who speaks at a Fed conference Thursday. After the Fed's recent offensive to convince markets it was prepared to raise rates this past week and its fairly dovish post-rate-hike comments, the markets are not expecting much from Fed speakers.
"I think you'd be shocked to get any surprises from any Fed speakers. I don't think anybody's going to stick their neck out, and they did a great job of choreographing this meeting," Hogan said.
So the market in the coming week could continue to trudge ahead, with an eye on Congress. "We're sort of in this information vacuum where the quarter is ending and you're a few weeks away from getting corporate earnings. The Fed is out of the way, the inflation data is out of the way," said Boockvar. "It's information no man's land."
Jeff Mortimer, director of investment strategy at BNY Mellon Wealth Management, said he expects the stock market to continue higher for now.
"I think markets march higher over the short to intermediate term," he said.
Earnings will be the next big focus. "We're going to get back to fundamentals. We'll look to Washington to see how they're progressing on health care, tax reform and the infrastructure bill, but I think in the next few weeks, it will turn to what it always does. It will turn from a top down to a bottom up perspective. We remain constructive on the markets. We're a tick over fair value, but our belief is equities will continue to outperform," said Mortimer.
He said a major theme for the market has been how resilient it's been, and he expects that to continue for the next year to 18 months.
"History speaks to the fact that as long as the market sees progress in Washington that I think it continues to find firm footing," Mortimer said. He said the market is also quite comfortable with the Fed's projection of two more rate hikes this year.
"I think the market will continue to look for progress in Washington, but I don't think it has a due date in mind," he said.
"Valuation concerns me a bit but it doesn't take away our bullish view," he said. "Could you get a 5 percent pullback for no reason whatsoever? Of course, you could … if there's a variable that could tip us over its higher inflation. That's the variable I have on my radar."
In the past week, stocks were flat to slightly higher. The S&P 500 was up 0.2 percent at 2,378, and the Dow up was virtually flat at 20,914, while the Nasdaq gained 0.7 percent to 5,900. Treasury yields moved off their highs after Wednesday's Fed meeting, and the 10-year was at 2.50 percent last Friday.
What to Watch
10 a.m. QFR
1:10 p.m. Chicago Fed President Charles Evans
Earnings: FedEx, Nike, Petrobras, General Mills, Lennar, Lands' End
8:30 a.m. Current account
8:30 a.m. Philadelphia Fed manufacturing
12:00 p.m Kansas City Fed President Esther George
6:00 p.m. Cleveland Fed President Loretta Mester
Earnings: Tencent, Winnebago, Five Below, Acushnet
9::00 a.m. FHFA home prices
10:00 a.m. Existing home sales
Earnings: Conagra, Scholastic, KB Home, Accenture, GameStop, Shoe Carnival, Micron
8:30 a.m. Initial claims
8:45 a.m. Fed chair Janet Yellen makes opening remarks at Strong Foundations Conference
10:00 a.m. New home sales
12:30 p.m. Minnepolis Fed President Neel Kashkari at Strong Foundations Conference
7:00 p.m. Dallas Fed President Rob Kaplan
Earnings: Finish Line
8:30 a.m. Durable goods
8:45 a.m. Chicago Fed's Evans
9:05 a.m. St. Louis Fed President James Bullard
9:45 a.m. Manufacturing PMI
10:00 a.m. New York Fed President William Dudley
Watch: Stockman says markets misreading Washington