The equity markets are in rally mode, and that’s despite the still-ugly economic and sentiment data that keeps pouring in. Of course, things aren’t completely bad on that front, as the latest data on consumer spending showed a 0.8% rise in the metric. That’s by no means fantastic, but it is the best showing for the measure in five months.

More discouraging this week was the latest survey from the Conference Board, which revealed that its Consumer Confidence Index plunged almost 15 points to 44.5 in August. That’s down from 59.2 points in July. Confidence, as measured by the index, now is at its lowest point since April 2009.

Still, stocks keep pushing higher, and a big reason why is because of the anticipation that the Fed will come to the rescue with more stimulus money. As you know, Wall Street loves free funds, and this time around they could come in a new form of quantitative easing, part three, or QE3. Last Friday, Fed Chairman Bernanke let Wall Street know that the central bank is ready to step in if need be with a stimulus fix. Traders have bought into that notion, but I think that’s a bad idea.

In fact, I think this rally is for suckers, and here’s why.

First off, we still are well below the long-term trend line in the major indices. The chart here of the S&P 500 Index tells me that despite the latest gains, we still have a long way to go before we can proclaim that this market is out of the woods. Until then, we are liable to see more steep drops and more pain on any negative news.

Second, the current sharp rally is characteristic of bear markets. That’s because traders are jumping in and capturing the bounce on the upside, then selling once they get their brief gains. That’s an okay strategy for a program trader, but it’s not the way an individual investor is going to consistently beat the market.

Finally, the other indices around the globe still are in bear market territory, including the once high-flying emerging markets. As you can see by the chart below, the emerging markets are still way below their short- and long-term trend lines. That means we are liable to see a lot of fits and starts in the global markets before any sustained rally takes hold.

We’ll get more clarity on the fate of stocks on Friday, as we find out how things look on the employment front. A really disappointing jobs number could send this market into freefall. Of course, a really bad number might actually insure that Mr. Bernanke implements some form of QE3, which would be bullish for stocks, if not for the economy at large. Given all of the unknowns this market faces, and given the potential for a lot more selling to come, I think those who buy into this rally may find themselves in trouble.

My advice here: don’t be a sucker.