This rally is driven by large banks: JPM, GS, BAC. All these fraud entities are trading at bubble time price. JPM is almost 180 billion in market cap, GS is quite close, BAC is at 170 billion, even the bankrupt AIG is trading at 10 billion market cap.
Remember this, the FED injected 5 trillion $ into the banking system through auction, free money, fraud money and TARP. This market will explode pretty soon. you will see Dow at 5000, SP at 30000 fairly soon.