When Does the Fed Cut Rates, With the Dow This High?

That's been the question I've wondered about for the past few weeks. A large portion of the bullish thesis is  based on the Fed cutting -- despite the Dow being at 52 week and all time highs.

I asked Mike Panzner to whip up one of his excellent charts on the subject, and here's what he came up with:

Over the past 35 years, there have been three occasions when the Fed has begun to ease with the Dow near a 52-week high -- will we soon see a fourth?

Federal Reserve Rate Cuts When Dow is Near High
click for larger chart

***Date and amount of 1st cut***  ***Date and value of 52-week high***   
  1/16/81   20.000% -> 16.000%            1/6/81   1004.69
   6/5/89    9.750% ->  9.625%              6/2/89   2516.90
   7/6/95    6.000% ->  5.75%                6/22/95   4589.64