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With the first quarter of 2009 behind us, we can now draw some reasonable conclusions about the current bear market and where we are heading for the remainder of the year.

If we simply look at the snapshot of market valuations on March 31 and project those results for the remainder of the year, investors might think that the markets are headed for another disastrous year.

Such an assumption, though, would be misguided and misses the subtle cues of the market's moves throughout the quarter.

At the start of the year, investors were hopeful for a January effect of higher prices, but never came. Instead, we were all treated to more losses and wild swings in prices that suggested a high degree of uncertainty.

At the nadir, the S&P 500 was down more than 26% for the year. At that time, panic was at a peak and professionals and amateurs alike acted defeated, and more importantly, disinterested.

That attitude set the stage for a powerful rally whereby the S&P 500 finished the quarter down a mere 11.7%. On the surface that may seem harsh, but considering where we were during the quarter investors should be encouraged by the result.

NEXT: Where Do Stocks Go From Here?