IMO - Stock rally has been on the back of the $DXY coming in from overbought conditions. Looks out below when the DXY finds a level....
Don't underestimate seasonality, especially in a pre-election year. This is especially true when a new yearly low is reached in October. The S&P hasn't had a losing pre-election year since early last century. Even 1987 eeked out a fractionally positive return by year end. Now, strong seasonality doesn't mean pre-election political shenanigans and frothy sentiment are actually good for the economy or markets in the long-run. I wouldn't be surprised if 2012 is another ugly election year for the markets like 2008, 2000, etc.