The Sky is the Limit! Really Now?

This market only knows one way, and that is up, up and away, which is demoralizing all the "Bears" out there, inclusive of myself.  I believe the following two reasons explain the current market's behavior:

1. The market believes that the Republicans are going to control Congress after the November 2 elections.
2. The market loves the prospect of QE2 and beyond.  Just today Charles Evans, President of the Fed of Chicago called for aggressive QE creation.

The following chart depicts the S&P 500 with some of my comments.

In keeping with my recent tradition of providing music for how the market is behaving, let's hear from the Fifth Dimension. (By the way, instead of "balloon, substitute MARKET.")  Enjoy.