This is one tough market to keep down.
As noted last week, we can look at this in two distinct phases: Part 1 was the typical recession bear market — from late October 2007 to early September 2008 (pre-Lehman). That was down from 14,200 to about 11,500, and lasted about ~10 months.
Phase II was the world ending, economic system collapsing, 5,000 point fall from 11,500 to 6,500 over the next 6 months.
I believe — or at least rationalize after the fact — that the rally off of the lows reflects the unwinding of that 5,000 point anticipation of Armageddon.
Recession Bear Market vs Armageddon ?
What Does the Economy Have to Do with the Market? (October 6th, 2009)
The Most Hated Rally in Wall Street History (October 8th, 2009)