The pattern seen above is being repeated all across the markets, from the IWM and MVV to the Qs.  We are buying the major indices, expecting it to turn into a trend trade (but not counting on it) and we analyze (note, not think–we’ve done too much thinking lately and it’s bad for your health and your portfolio) that a new upwave is taking off.

See prices in a zeta wave break the downtrend line.  See that there are two downtrend lines here.  Less aggressive investors will take the  break of the higher line, or even the new highs.

Once again we emphasize the treachery of signals in this market, and applaud our readers who yawned at this downwave and observed their long term Basing Point stops.