The surprise the bears feel over the continued rise of this market may be due to QE3 in disguise. ContraryInvestor has a good analaysis of how the backstopping of the European bailout fund LTRO by the Fed is acting like a wnother wash of liquidity, this time trhough Europe. (See chart).
Given how the market inexorably rose with minor pullbacks during the last two QE episodes, we should expect something similar now until the LTRO backstop runs its course.
The bears will expect it to crest before getting too out of control, but they may be misreading both the Fed's determination and thye wave count. If we count this structure as wave C since 2009 in a large ABC made up of two doubke zigzags internally, it could continue up like the QE2 period (the A leg of the second double zigzag) towards 1500, giving a triple top since 2000.
Not a prediction but food for thought for the bears.