Pre Market

The markets in Asia are very bullish save India. Europe is a mixed bag though things may change once the US markets open.

Economic Calendar
Housing starts on Tuesday and Jobless claims, leading indicators and Philly Fed survey on Thursday will be the main focal point this week.

Things to Watch

• the 10 year bond yield . Rising yield = lower stock prices and vice versa.
• the US Dollar. The USD has been gaining strength as of late which may cause the rising equity trend to reverse.
• the Japanese Yen. How much longer can the Bank of Japan keep rates low and how long before the carry trade unwinds.
• the price of Crude Oil. Oil is starting to break out as of late and lets see what affect this has on equities.
• the price of Gold. Gold is at a critical juncture and could go either way. Inflation is still a problem as the CPI showed and I would expect Gold prices to rise.

I expect the market to close flat to moderately higher today in anticipation of tomorrow's Housing data.