Tricky Juncture

There is something for the bulls and bears in this market.
Bullish points:

1. Market has broken through resistance at 1100-1105 and stayed above 1105.  
2. Sentiment has not gotten bullish despite the continued strength.
3. Rallying on bad economic numbers and earnings warnings.

Bearish points:

1. Lot of technical damage done from early May to now. Most since March 09.
2. Fundamentals are clearly getting worse as noted by earnings warnings and Europe sovereign credit spreads.
3. Q2 earnings expectations are still high and potential for disappointment.
4. Bad news is always lurking from the PIIGS.