I believe the market is set up for a large advance as market participants are at extremely low equity allocations and corporations continue to buy shares. Unfortunately, the situation in Europe is hanging over the market. The inaction by EU officials is mind boggling.
The strategy of EU officials seems to be to pray that things get better. I don't think a Greek default would necessarily be a bad thing as long as a mechanism was in place to stop it from spreading. But officials cannot even agree upon that. I think the market just wants to know what is going on, be it a bankruptcy or a rescue.