Joining the peaks and troughs, we can a triangle which is descending. I think this is a bearish formation because it achieves the most basic of trend analysis - lower highs and lower lows means downtrend, while higher highs and higher lows means uptrend. A descending triangle means a lower high is achieved with lower lows.
This kind of formation will mean that the index/stock will flunctuate up and down inside the triangle until it finally breaks out of it with huge price movement (can be either up or down). From the looks of it, a break to the downside seems more likely.
Actually this kind of formation is good for warrant trading intraday. I would buy near lower trendline and sell on upper trendline, cutting losses if breakout occurs.
Dow seems to be waiting for something to happen. Once it happens, it'll explode up or down, depending on the news.
Got to sleep already, good trading this morning at 9am!
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