This fear has put a dent in the three-month advance that saw stocks jump more than 30 percent from 12-year lows in early March.

Now the question is where will the stock market go in the second half of this year?

"It's quite possible that the market will not go down and make new lows as somebody is saying, but also it is not going to go back and make new highs," Theodore said. "We can expect that the stock market will be boring."

Alan was more bearish, warning that "the year is going to end down." He thought the market will likely to either trade sideways or test the lows because "the picture is not that bright."

First of all, the unemployment rate in the United States was expected to reach 10 percent in the days ahead. High unemployment can have a ripple effect on the economy, making a bad economy even worse because it changes consumers' spending habits and makes them keep expenses on a tight rein.

Although economists point out that while the pace at which Americans are losing their jobs is decreasing, the large number of people looking for work or not working enough hours remains a serious problem.

"Even though it has stabilized, there's still no one hiring. That's the problem," Alan said.

Meanwhile, there is no spike in the housing recovery. On the one hand, housing prices cannot go back up while unemployment remains high. On the other hand, mortgage rates are more than five percent right now, much higher than the desired four percent, and are stifling the market.

In addition, oil prices have doubled to nearly 70 dollars a barrel as the second half of 2009 starts. That could dampen any improvement in consumer spending.

"We're concerned that a rapid increase in oil prices may have a negative effect on the economic recovery," said Nobuo Tanaka, executive director of the International Energy (OOTC:ILGL) Agency.

Last but not least, although the market is trying to shake off concerns about the financial sector, bad assets caused by subprime loans still weigh on the balance sheets of some financial firms.

Investors' sentiments face strong headwinds from these troubles and caution is in order. For the market to continue its upward march, investors need to see something more concrete.

Given that the economic recovery unlikely will be dramatic, traders don't think the equity market will be very exciting in the second half of the year.