The big catalyst for this move was the trade deficit number, which shrank $12 billion in December. This shows that the U.S. is exporting more, and importing less oil – and it reassures many that the despite the contraction in the gross domestic product number last quarter, the GDP of the United States is not really contracting. Indeed, most believe that as long as the government does not get in the way and mess up the sequester negotiations, the first quarter should show decent growth.
With last week's momentum, this week we will probably see the Dow Jones industrial average make a move for its all-time highs of 14,164.53.
I recommend getting long the March E-mini S&P at 1510. There is support at 1,500 and 1,490, and I would look for a move to 1,530. Once it gets there, you should start looking to take a profit, and I would watch for some sort of correction – but when that happens, I would buy again, as long as the market holds the 1,475 area. So long as qualitative easing continues, and investors remain hungry for risk, the strength in the market cannot be ignored. That's why, even if it does correct, the market remains in a bull pattern and could set new highs very soon.