From what I can gather, via the media reports, there are plenty who are still very cautious. IMO, the reason being, simply, the technicals are very nasty.
The 'perceived negativity' is fading quickly with the austerity measures passing country-to-country, and the uniformity of the EU objective is crawling through. As my previous Market Thought posts stated, with the 'perceived negativity' fading, the hedgies (who are not as invested as they should be) will begin to model the market on company/economic fundamentals, not on a model based on 'what-if negative geo-political' scenarios.
Here are the technicals: The SP 500 has support, but look at the sea of resistance via the SMAs it has to climb out of. (This is causing the hedgies, and me too, reason to think a churning market is likely.)
The SP500 weekly chart, has a similar issue.
However (there always is a 'however' :), the internals (key individual stocks) are a mixed bag. Some are not broken at all, or appear broken but are not. And the ones that are, an individual justification can be made. This supports an underlining strength that many are not seeing or ignoring. The real kicker is that the transports are very much intact. (This is why I am not looking to short this potential market churn, and just be a buyer on weakness and seller of over-extended names.)
Combine the internal strength with the economic fundamentals and reduced 'perceived negativity' the market can go through these potential resistance points with little difficulty.
And just as a teaser, here is an example of a stock that looks broken, but is not as bad as one would think.
Look how GS has held its 500SMA. Forget the 200SMA with GS. The real long-term support/resistance is the 500SMA w/respect to GS. (As highlighted in a previous post.) It is holding beautifully, and look how the 14SMA is curling up just above the 500SMA. IMO, it looks juicy, and believe it will go to 160 sooner-rather-than-later.