Dow has hit 12000. Corporate profits at record levels. Valuations not yet in bubble territory yet. And if you look at the long term chart for the Dow, this looks like a real breakout. It just doesn't feel like a real breakout because of the geopolitical news, and the deflation in housing. I think this rally can easily continue to 'shock and awe'. Because bearish sentiment still pervasive dispite this 4-5 year bull market. IWM QQQQ EEM still haven't recovered fully from the May selloff. My view has changed. I think the Wealth effect from this rally if it continues can easily prevent a recession. I mean if everyday Katie Couric has to say "Dow hit another all time high today" - that's bullish for consumer sentiment despite housing. Since 1999-2000 was the high point of the last bull market, I'm thinking 2009-2010 will the the high point of this bull market - Since its rare for the market to not be at new highs in any ten year period. Dow could easily be at 14-16k in 09-10 even with PEs below 20. Then perhaps come down to 10-11k. Then a real speculative market bubble can develop sending us soaring. This all speculation but hey I'm a speculator.