THE BIG PICTURE: Supporting the latest move in the Dow is the legacy up trend line which is approaching a century in duration. The current up swing is just another thrust or impulse higher. It's apparent that the old highs have been surpassed enough to justify a buy signal in anticipation of a major move. Each major previous bull market lasted at least 30 years. Both bear markets were not enough to break below the trend line.
THE TECHNICAL STANDPOINT: Although it is easy to submit a bullish bias, the execution is going to be critical. Most pullbacks have been shallow, but the chart suggests that a major down swing is required to get price to the long term trend line. If the past breakouts are any indication of the future prospects for the Dow, then the highs of 2007 will be left in the dust.
THE TECHNICAL STANDPOINT: Although it is easy to submit a bullish bias, the execution is going to be critical. Most pullbacks have been shallow, but the chart suggests that a major down swing is required to get price to the long term trend line. If the past breakouts are any indication of the future prospects for the Dow, then the highs of 2007 will be left in the dust.