The 3 LRs study (linear regression channels,30,11,3) shows that this week's action was mostly a consolidation of momentum and volume. The XLFs continue to display weakness relative to the rest of my little basket. Down $.99 for the week and hitting an intraweek low of $ 8.07 on increasing volume, the XLF is currently showing bearish technicals on both daily and weekly bars.
Above is the update of the daily and weekly bars for the VIX and a peek at the daily T2108 (% of stocks > 40MA) on daily and weekly bars. As with last week, there is a distinct divergence of trend in both the daily and weekly bars of the VIX and T2108. The VIX continues to hover in the high 40s with forays into the 50s intraday. Earnings continue to drive market surges, with a net neutral outcome for the week on the major indices.
Prognosis? A solid break , but whether it will be to the upside or downside remains to be seen.