>> the market was last at 10,000 back in October when it broke that mark on the downside.

So in Wall Street land last year didn't actually happen and all of the problems that surfaced with the economy are forgotten. YIPPEE

That is now the consensus opinion.

I'm convinced we have a bit more to see on the upside then Look Out Below. Iridium has a good point: We haven't really dealt with the underlying problems facing our economy. We've papered them over with additional debt and the piper still waits to be paid. As the recovery unfolds interest rates will start to rise and it won't take a lot to throw our economy back into another downward spiral. My economic model is still high in positive territory which indicates growth for at least the next 9 to 12 months but when the business cycle indicator starts going down I expect it to hit negative numbers in record time. One thing could change this forecast: We could start consuming less and, with a cheaper dollar, export a whole lot more. I just don't don't see that as a real possibility.

Can the market go higher? Will the market go higher? The answer is yes to both. There is certainly a tendency on Wall St. to believe in both optimism and fabrication simultaneously.
The reality of the economy dictates that this will be a short lived level.
The optimism is earnings driven.
IF the government had not intervened the earnings of J.P.Morgan/Chase would have been non-existent, in fact this company itself would have been lucky to have survived insolvency. They are there because AIG is still here and the same can be said for the Merrill/BoFA deal that is still under scrutiny. This, along with GM, all of the failed banks, the retailers, unemployment that is officially over 10% in quite a few States all adds up to a scenario that is akin to a trip to the movie house. You can get some relief until the film is over. Basically, that is what is out here.
What is keeping this ship afloat is government stimulus/bailouts, an export economy (like the U.K) and business cost cutting.
What is going to knock the wind out of the sails is that the export market will start to dry up and businesses will be confronted with conditions that will prevent any further cost cutting. At that point - profit will disappear - and so will market optimism.
The banks are now holding large reserves, credit costs are high and contrary to government reports, loans are not that easy to come by. Aside from the government mandated housing mortgage readjustments/modifications there is little to cheer about in the financial sector unless you are in a bonus recipient position. One big tell tale is that the aforementioned "home loan modification" program is still stuck in first gear. Only a real jackass has to wonder why?
It is quite amazing that we all (the citizens) know how we came into this predicament, yet we still fall prey to the political bull. I often wonder, why in this day and age of computers and light speed communications that we cannot get closer to the original idea of a Solon style Republic. It would not be much of problem to install permanent electronic voting equipment in all the major stores and libraries and all our elected representatives would have to do would be create the legislation - than WE would vote on it. Just think - all of the special interests, lobbyists, PAC's - would no longer be doing our thinking and ruining our lives.