Interest Rates and the Money Supply
Traditionally as the fed loosens, interest rates fall and the market rises (the increase money flows into stocks and the lower yields in bonds makes stocks more attractive) as the economy grows interest rates may rise (increased credit demand) while the stock market continues to rise. Finally at some point interest rates are too high (either because of inflation or Fed tightening) and the stock market falls. best bond site also see current rates, interest rate trends, Federal Reserve, Fed Releases, St. Louis Fed Data

It's not clear if tracking the money supply is of any predictive value. Some have blamed Greenspan for too rapidly expanding the money supply in 1999 (in fear of a Y2K problem) causing the final stock bubble, and then too aggressively draining the money supply in 2000 and precipitating the market collapse (see AT LEFT)

It's not clear if the money supply is increasing despite the Fed loosening (see graph)