Looks like time to get back in for the next leg up in the market. The brief stock market pullback lasted just about a week or so and amounted to a 5% correction. With Ireland now having agreed to an EU-IMF bailout loan package it would appear that EU fear card is now off the table. That said, the US dollar looks ready to resume its downward move again which means that the risk trade is back on.
The recent batch of economic reading has shown an economy clearly on the mend and with the Fed still in an easing mode with QE2, all indications are that the stock market is headed higher from here. The 1,227 level on the S&P 500 has been a stubborn resistance point, but once it gets past that look out, 1,350-1,400 does not look out of reach.
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