"The employment numbers will almost undoubtedly be very ugly. What will be interesting to see is what the market's reaction will be to those numbers," Thorne said. "We're also very interested to see what the corporate earnings reporting season will be like."

Harris Financial's Beck said the earnings reports could be a turning point for the market. "People expect earnings to be really bad. If they come out and they're not quite as bad, you could see this momentum in the market continue," he said. "If they come out even worse than expectations, that could be a major set back."

Stocks overseas also began the new year with a rally. Britain's FTSE 100 rose 2.88 percent, Germany's DAX index jumped 3.39 percent, and France's CAC-40 increased 4.09 percent. Markets in Japan were closed for a holiday.

The Dow Jones industrial average ended the week up 519.14, or 6.1 percent, at 9,034.69. The Standard & Poor's 500 index rose 59, or 6.8 percent, to 931.80. The Nasdaq composite index ended the week up 101.97, or 6.7 percent, at 1,632.21.

The Russell 2000 index finished the week up 29.07, or 6.1 percent, at 505.84.

The Dow Jones Wilshire 5000 Composite Index - a free-float weighted index that measures 5,000 U.S. based companies - ended at 9,364.54, up 595.19 points, or 6.79 percent, for the week. A year ago, the index was at 14,613.57.