1. There has yet to be that strong push forward. On the desk, everyone is waiting for that move to signal the top. When markets come to an end there is usually the egregious move. But day in and day out we trade in this tight range slowly grinding forward.
2. The earnings front: It seems that there is nothing but positive earnings. Stock after stock are topping analyst estimates.
3. QE2 ends in June. I believe that as long as the “Fed” can spend, the market moves higher.
Now, that does not mean the economy is improving overall. We have an unemployment rate greater than 9%, which is more like 15%. There is still a housing crisis as foreclosures are still eminent. The “Fed” is testing the banks balance sheets, to see if they could sustain a double dip recession. Does this strike anyone else as a bit peculiar? We also have fears of inflation and rising commodity prices. At this rate, a pair of socks will cost $100. And we can not forget all this shit that is going on in the Middle East.