Before we take a look at the chart, let's consider the macro-environment. The US response to the bank crisis was piecemeal at first. As a result, traders were very concerned about what was actually going to happen in the US. Therefore the markets sold-off big time.
However, over the last week or so we've seen a strong response to the problem. Europe is dumping trillions of dollars into the problem and the US will actually inject equity into 9 of the country's largest banks. As a result it appears the situation is stabilized -- at least for now
As a result, take a look at the above chart from the standpoint of stabilization. I've drawn two lines that I'm thinking will provide the general borders of the market's action for the next bit of time. This assumes nothing crazier happens in the interim. My thought is we'll see a standard consolidation -- be it a trading range or some type of triangle formation.