The S & P 500 index broke to new highs Friday, which could generate significant momentum Retail investors looking to move into riskier assets. Both the fundamental and technical image for us stocks seems robust. A recent article published in wealth Advisor Club (http://thewealthadvisorsclub.com/business/1095/sp-500-poi...), suggests that strong economic data US in the areas of employment and housing are the catalysts behind the rise in US equity awards.
According to the article, February new and existing home sales were better than expected and the Case Shiller housing for January price index showed the most growth in the last 12 months. Despite the recent volatility introduced by fears about the Cypriot banking system, U.S. markets have gained strong momentum and are likely to continue to go higher.
Of the headwinds that could affect the US rally is the recent decline in Japanese feeling. Investigation of Tankan of Japan which was published Monday, April 1, 2013 showed improvement modest in feeling, while still producing a negative number. Decrease in capital expenditures is also makes it difficult for the Japanese to fire on all cylinders economy.