Basically the market is in wait-mode until June, to see if there will be any more QE's coming from the Fed; the current batch runs out then. A lot of the down-sliding of late in the DOW and S&P is directly attributable to the fact that people are starting to bet that not much more QE will be forthcoming. If you don't see more QE, you can fuggedaboud 40% of the 100% rise in the averages since March of '09. Ie, an S&P of about 1050 is quite possible by year-end.Mish today has a good, detailed post making the same point:
All things considered, but especially jobs, housing, and petroleum usage, there is solid evidence we are in the midst of a stimulus-fed financial recovery as opposed to a recovery in any real sense of the word.
When the stimulus dies, the recovery will die with it.