Have we gotten ahead of ourselves?

Recently, the the three major indices in the US, SP500, NASDAQ, DJIA have left investors with some good returns. It made me think though have we taken to big a step. Most of this movement is contributed to corporate earnings that have beaten estimates. On the other hand, while 70% of companies have beaten estimates much of this attributed to cost cutting and very little has to do with increased sales. These cost cutting efforts have led to higher unemployment and will eventually lead to lower consumer spending. The University Of Michigan poll shows that consumer sentiment is still falling and consumer spending is also. At what point will corporate earnings start to beat top line earnings estimates? I think unemployment will slow dramatically late in '09 and then we will see spending start to increase. Also, as banks will hopefully have improved their capital levels and will extend more credit. We can see unemployment above 10% throughout '10 and lending still at depressed levels. I think we will see a minor correction of 5% and then we will ascend to 1100 on the SP500. Maybe I am getting a little ahead of myself. Well anyway, we need to proceed with caution and realize that markets my react quickly, but the economy will not. Best of luck! Hopefully, future policy decisions by the White House and Congress will not squeeze out any hopes of a recovery.