The Dow average is forming a pattern that's generating a lot of chatter among the technical analyst community (there's a community?) and the Fast Money traders. Using a bar chart for the Dow, draw a trend line from the September intraday high diagonally down, touch the November 4 high and keep going. Then draw a straight line across the lows, touching the October 10 intraday low and the low made during the day last Thursday (right before the monster intraday rebound) until you connect with the hypotenuse. You're looking at a right triangle, also called a wedge among chart worshippers. The Dow is clearly bouncing around within this triangle, posting lower high after lower high.
"We know only that 'triangles' such as this one tend to resolve themselves to the downside,'' writes Dennis Gartman this morning in The Gartman Letter, which is standard reading on Wall Street trading floors everywhere. But he's not alone by any means.
Chalk one up for Dotcommunism. CNBC has finally recognized this pattern where the Dow refuses to drop below 8000 for more than an hour, but you heard it here weeks before CNBC acknowledged this pattern.