He said news of the European Central Bank deciding to print money or the Federal Reserve embarking on a new liquidity program could be the spark that lifts prices.
Mounting inflation will also put pressure on Fed Chairman Ben Bernanke and his program of quantitative easing, dubbed QE2, devised to spark inflationary expectations. (Read Distressed Debt Investors Prefer Real Estate in 2011).
The current three-day surge is the strongest for the major averages in three months, but with resistance looming the potential for an external factor to spark another downturn (like, say, the Fed ending its QE2 program Thursday) is certainly important to keep in mind.