I'll not sure whether latest rally in stocks is sustainable or not. But it is self-fulfilling. Rising stock prices improve consumer confidence, and more importantly send a signal to CEO's and other executives that maybe there is a light at the end of the tunnel, unless that light is not another oncoming train.

CEOs, who despite the appearances, are as human as everyone else may decide to postpone or at least reduce the speed of job cuts as they start taking cues from the stock market.

Thus this stock market rally -if not followed by a sharp decline- may actually help the economy, at least in the short run.

The rally has sustained for six consecutive weeks which was beyond anybody's imagination. The S&P500 is still very overbought, so you will see a correction in the coming weeks.

for you bears out there.

this video is about 2 weeks old but it features nouriel roubini whose name has been bandied about on this forum.

http://watch.bnn.ca/the-close/april-2009/the-close-april-7-2009/#clip158793