Market participants are looking at housing, unemployment and the national budget deficit as clues to whether the recession is abating, Saluzzi said. Stocks are at a level where they could break higher, he added, but people are still very cautious.
'If housing prices remain at rock bottom, people can't spend,' Saluzzi said. 'If they can't spend, we won't get a robust recovery. Housing ties it all together.'
Therefore, investors will keep a close eye on this week's reports about sales of new and existing homes, housing affordability, building permits and residential construction."
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NOTE: they actually said it could be possible to see housing new home construction stats increase. INCREDIBLE a glut of foreclosed and short sale homes on market and new construction permits will INCREASE?