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S&P 500 ETF- SPY Bullish but Watch Housing by Wednesday

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Technically Speaking-

There is no doubt that we are strongly moving upward. After the gain we had Friday there is no reason not to say we are still strongly bullish.

Not only did we increase after a weak Monday, but we also grew on increased volume all week. This shows the strength of the move this week.

Other Market Influences-

In the week ahead, the U.S. housing reports coupled with inflation and economic growth data from China, will shed light on whether there is a recovery in the U.S. housing market and could confirm the expectations that the fastest-growing economy in the world may be slowing down.

Throughout last year, the U.S. housing data has been either weak or mixed, at best, and this report could have a similar outcome with the housing starts registering a slight decline to 554K in December from 555K in November.

These are two important factors for us to look at by Wednesday to see how long this market continues to move upward at the rate it is.

If we need to write about being cautious, there are a lot of bad things that can happen to the EUR in particular in the coming months, and it has bounced higher very quickly on nothing more than some hope of better times. Watch in the coming months what happens with Spain and Ireland debt problems.

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