Well the Euro continues to lose value against the US dollar. I thought the channel at 1.3250 may hold but no such luck. We have now seen the Euro bounce off the 1.2864 resistance level and we will see if it holds. If the Euro keeps tanking we will see more pressure on the stock market.
All the year end selling was done last week and now we have the seasonal rise in the market. RRSPs are often topped up before the end of February and people use the contributions to buy investments. I would also guess that there is a lot of $$ sitting on the sidelines waiting for the markets to tell them it is time for a run.