Why Are We Rallying This Thing?

It's the way of the market.

As Al Funt would say, "when you least expect it, expect it."

The market is rallying on hope and history. Hope that we will see a turnaround by the end of this year, and history associated with the idea that stock markets typically bottom about 6 months before the economy bottoms.

If the recovery is real, then the rally will be supported, if the recovery is premature, then there will be insufficient economic substance to support the market.