Let’s not make this romp to Dow 35000 too terribly easy for the bulls and their evil masters on Wall Street. Note in the weekly chart that although yesterday’s rally spirited the Dow into solidly impulsive territory, there remains an unconquered peak-along-the-wall going back to August ’09 that implicitly challenges the herd’s daring.  It lies at 11867, and we should stipulate that the Indoos must exceed it before we cast our lot somewhat wholeheartedly with imbeciles, the foolhardy and, ultimately, with wild-eyed speculators.  We should also require that the rally be unpaused (i.e., no ‘a-b’ pullbacks along the way) on the weekly chart until it gets past our benchmark.

For now, though, no discrete portion of the endless stretch of rally from the March ’09 low can be treated as an impulse leg, since none of the three visually evident segments surpassed the required two prior peaks. In fact, the only impulse leg we have to work with to project higher prices is the uncompleted one begun from  9937 on August 27.  Since it has yet to terminate, we cannot say much about how high this suicidal climb will go.  But as noted above, it would significantly increase the implied power of the move if the Dow were to keep chugging higher, surpassing 11867 with nary a b-c pullback along the way.  Take a look at the chart, since it greatly simplifies what I’ve said above.