What a Week: Clouds Part

"The S&P 500 is the most important economic indicator right now," says Bianco. "It implies a tailwind for the economy."

It's not clear where the tailwind will come from, as most acknowledge the housing slump is likely to take several quarters to work itself out. This week's housing reports were mediocre. Housing starts were higher in February, but that rise followed the weakest January in nine years. Existing-home sales were higher than expected, but prices declined and inventories increased.

Next week is flush with more economic signals, as February's durable-goods orders, new-home sales and personal income and spending data will stream in. Likewise, Bernanke will testify before the Joint Economic Committee on the subprime mortgage market on Wednesday.

With a bigger docket of data and Fed-speak, we'll learn if this week's really closed the book on an early spring correction, or if there's more drama ahead.