Dow 8000: 5 Reasons Driving the Rally

Spring has sprung and so has the market. Like the first crocuses of the season popping their pretty little heads out of the dirt, Dow 8000 is a beautiful sight for winter-weary investors.

But why the optimism now? It's been a bleak two months since the Dow Jones Industrial Average last saw this level and -- even worse -- that was on the way down. This may be just another bear-market head-fake, but there's no denying that the Dow and the broader S&P 500 are up more than 20% from their March 9 closing lows. And, hey, that's certainly better than the alternative of further declines.

Though there are plenty of challenges ahead -- including what promises to be a dismal unemployment figure later this week -- but at least this rally isn’t built entirely on thin air. For the first time in a long time, economic and corporate news is starting to come in better than expected. Financial institutions caught a break in how they account for troubled assets. And, most important, the new administration is -- for the time being -- re-instilling confidence on Wall Street and Main Street.

Here, then, is a look at the five pillars of a most welcome rally.