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The consumer conundrum could be highlighted on Friday

As all major markets closed lower on Thursday — the S&P 500 logging its worst day since mid-May as tech stocks declined, and the Nasdaq Composite tracking for its worst month since last October — 55 Institutional market strategist Max Wolff discussed three key market themes he is watching for on Friday.

1. Consumer sentiment

The University of Michigan is set to publish its Monthly Surveys of Consumers data, a broad measurement of consumer sentiment, shortly after the opening bell on Friday.

"I'll be watching consumer sentiment this week because we feel like it is a good indicator of where we go from here. It's been a bit perplexing that the general opinion polls aren't so good but consumer sentiment is strong, and we'll be looking to see if it stays strong," Wolff said Thursday on CNBC's "Trading Nation."

Economists are expecting a reading of 94.4, down slightly from last month's final reading of 94.5.

2. Chicago PMI

The Institute for Supply Management is due to publish its Chicago purchasing managers' index data shortly after the market opens on Friday. Economists are forecasting a reading of 58, below its previous reading of 59.4.

Wolff is watching for the results of the gauge as "how the Midwest is doing and how manufacturing is doing. Manufacturing is key to the American psyche; key to the economy."

3. Bond yields

The U.S. 10-year Treasury note yield hit its highest level in nearly one month, just below 2.3 percent. Wolff is watching for where yields go before the long weekend.

"We really get a good gauge here of how people are feeling about the future; are they more greedy or are they more afraid?" Wolff said Thursday.

Bond yields have risen sharply this week, as investors anticipate central banks around the world will turn more hawkish.

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