A short-term rally will probably happen this Spring. If so, it is a "sucker's rally."
Maybe it's a quirk of human psychology, but it seems like far too many investors buy at the high and sell at the low. It's such a common mistake that the inverse saying ("Buy high, Sell low") may be the most common in the Wall Street rule-book.
Many investors with cash may sit on the sidelines over the next few months as the stock market moves upwards. Near the high they will buy into the market, just when they can't take the pain of watching from the sidelines any longer.
We're coming off a Fear-bottom now (as Frank pointed out, the Bear-Stearns news was the straw that prompted a cleansing "capitulation"). It was "cleansing" because it knocked the weak money out of the stock market. Now strong money remains, and the race to Dow 13,000 is on again.
Why does this "Buy high and Sell low" misbehavior happen, and why is it so predictable? It seems to be one of the many mysteries of market psychology.