While profits are holding up remarkably well, the market's real test will come on Wednesday, after US Federal Reserve chairman Janet Yellen is grilled by Congress over when US rates will rise.
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The Fed's policy of easy money, starting with an official rate of 0.25 per cent, which is designed to pump up US markets has spilled to almost every other stock market as well, including ours.
In fact Japan Post's seemingly over the top $6.5 billion bid for transport group Toll says it all.
When you can borrow for 10 years at 0.5 per cent on a bad day, as Japan Post can since it's government-owned, at least for now, and Australian assets have become cheaper thanks to a weaker dollar, why not?
There'll be more where that's coming from as Japanese pension funds and corporations would be mad not to take advantage of the cheap money the Bank of Japan is pumping out by loading up on local and foreign stocks, plus, if there's any left, Australian government bonds.
Could Yellen's testimony change all this? I suspect so because markets have decided the Fed's not fair dinkum about raising US rates. Uncle Sam's bond yields are the risk-free benchmark against which all financial assets are ultimately valued, so if they rise all markets will feel it.
The Fed's minutes of its latest meeting, which are far more detailed than the Reserve Bank's, with an almost blow-by-blow description of what was said, revealed that "many" members of the board want to delay a rate rise, while only "some" want to move soon. One lone voice – there's always somebody – wants to cut rates.
It looks suspiciously like the Fed, not the markets, is the more jittery about higher rates.
Anyway I suspect it takes a central bank to know what another central bank is thinking. Come on down Glenn, governor of the Reserve Bank.
"My take on what our counterparts in the Fed have been saying recently is that they are much more confident now that they are in a sustained upswing," Stevens told parliament the other day.
"The US is going to be raising rates in three or four months time if they proceed according to their articulated intentions," he added.
Then came the sting: "When the Fed is in a tightening phase, disruption happens around the world." Yikes.
So if Yellen's words are construed, as it seems they should be, as sticking to the timetable, watch out.
Still, once markets get over the shock, what's there to be worried about?
Between them Japan and the European Central Bank will be pumping in more liquidity than the Fed was in the last months of its quantitative easing.
With plenty of money around and near-zero interest rates, the fact is traditional sharemarket valuations are just swamped.
Besides, higher rates in the US would lift the US dollar – a reason the Fed is hesitating – making a lower Australian dollar a welcome boost for the market.
Mind you, that also limits how far the Reserve Bank is likely to cut rates here.
