The market is up largely on indications that foreign economies (largely China and India, but also Germany and France) are performing much better than our own. Because so much American capital is now invested abroad, that’s considered cheery news. The problem of how Americans without jobs will continue to purchase goods and services largely made abroad is presently being ignored.
That, and the fact that employers are seen to be laying off fewer workers here (of course, there are fewer to lay off).
...or even Americans with jobs. Everyone with an income is paying down debt and saving for torrential rainy-day they see on the horizon. There aren't many employed people who are out spending on stuff. And that's an even bigger problem - or at least as big - than the hit being taken because unemployment is so high.