This upwave broken at 7 days.

2010-07-15-induhIn this thirty minute chart the upwave is shown either pausing or ending.  Our last letter pointed out the violent cross currents and changes of direction — eight in 53 days — now, probably nine.  If you are trading you must be on this rhythm (as analyzed in detail in the last letter).   It is expected that this wave would be sputtering here — either to give a trendline anchor, or to reverse and test the previous low.  Notice that the wave is at the downtrend line which must be broken to create a positive bullish tone.

We have had two levels of stops broken already and certainly new lows would be very serious for bulls.

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