After a 5% up move in the S&P futures over the last two trading days, it's difficult for me to buy in at these levels. I believe a temporary pullback is likely, and would in fact be a healthful way for the market to set up for a more sustained move higher. I expect the pullback to take the market back into the 1426 area, which would fills a gap on a daily chart, and should attract buyers.
The longer-term fundamental story still remains positive,particularly after today's better-than-expected employment data. The market should also begin to focus on the positive data from the housing industry, and the developments in Japan and China, as a catalyst for higher prices.
Another reason for my high hopes? There is a tremendous amount of sideline money that has grown frustrated with the paltry returns provided by Treasuries. That money could provide significant fuel for a first quarter run-up.