S&P 500 over valued? The Fed money pump keep stocks buoyant. Supports could break on more 'gloom'

The S&P 500 rallies despite overwhelming bad news. This has occurred because of several things, one the Fed is thawing up credit markets for the larger companies to tap (sorry not for the consumer), earnings are on the back of tax payer bailouts, particularly the Banks for the 1st quarter of 2009. Risk is back with a vengeance, so a stock bubble is forming even in oversold markets. With valuation's up to 14+ times earnings, so it would indicate that institutional investors, or bigger brokerage firms have reaffirmed risk appetite. Considering how fucked up the US economy is, I am looking for a further drop in valuation to say, 'yes the market has bottomed'; and that could be months off. Big brokerage firms like Goldman Sachs and the rest of Wall Street will naturally fall into feverish risk taking again, and guess what? They can tap the US taxpayer when Wall Street hits a downside.

Still, what goes up comes down. Which might keep stocks in a bear market are the major problems of companies earnings into 2009, more so the larger banks and consumer based companies (like tech stocks, i.e we will be holding on to our old software and computers). The US recession continues on, despite an over valuation ( as mentioned stocks are not that cheap). The S & P 500 could fall further into 2009, in fact it could touch lows or go below 676 (March 9 2009).

Of course nothing is without disturbance, market analysts, traders and economists should factor everything in (long term), from geopolitical, future economic peril, particularly bank issues, bank bankruptcies and further large underemployment figures. Then their is a flu pandemic. So it is extremely unlikely that this is the beginning of a bull market.

Still as Marc Faber said recently, the 'Fed will keep printing money' despite continue gloom, as excess liquidity will support stock prices more so the S & P 500. So it's a tug of war of fundamentals (reality) and a US Federal Reserve printing press. Something will give at some point. Hard to say when, but a another shock to the stock market is on the cards. Could be closer than we think, particularly if the Pandemic starts to crunch economies, more so Asia (Singapore, South Korea and Japan).