1) There are very few fundamental indicators that support the rally.
2) The few positive economic signs of life may be due simply to temporary stimulus boost.
3) The S&P 500 is still battling the 1121/50% retracement.
4) Valuations are once again, too high.
5) Investors got way too bullish.
6) With rates already at 0% and the money multiplier below 1, the Fed is powerless to stimulate the economy via the credit markets.
7) Fear that the banks may tighten credit further in response to political attacks and the potential for strict reforms.
8) Uncertainty over whether Obama, Bernanke, Geithner & Co. are the right folks to handle the most difficult economic environment since the Great Depression.