Thanks Matt. Very informative article and explanation!

kalliergo- yes many times in TS, when you break a trendline, you often come back to re-test it. However not always and not right away, for example if you have a breakaway gap, those generally do not fill right away or at all.  Also, whenever you have so many factors coming into play like you did for the indexes, like the multiple points of negative divergence, declining volume, US Dollar rally etc, a stock or index is wound up like a rubber band ready to snap; in those cases you can gap up over the trend line and just go.  

Regarding the 60 min charts, the 60 period stochastics crossed below 80% on Tuesday and were not able to get back above 80% on the Tuesday afternoon bounce, that was a negative and good enough reason for me to take some shorts home.  If you were not short, you could have jumped on board on yesterday's gap down, yes it's hard to do psychologically, but there are times and reasons for gap and runs; Steve said in his Tues night update that once the wedges break, it should be hard and fast.

here's a little piece I wrote on Breakaway gaps back in 2002!  I strongly need to update this and re-write it, I've learned a lot in 8 years LOL but will give you an idea of gaps that occur over trendlines

http://www.breakpointtrades.net/Education/BreakGaps/Breakgaps.html