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