The bullish scenario forecast by last weekend's pivot impulse reading has played out consistently this week as the VIX has receded to 37, a level not seen since January.
Just a mid-day gander at my little ETF basket confirms that hope springs eternal on rapidly deteriorating volume. Perhaps amazingly, after this week's substantial pop the technicals are still hugging the zero line and generating ambivalent signals.
The XLE model continues to follow the LR75 channel model, while other components of the basket have all shown breakouts.
Faced with substantial overhead resistance at these levels, any sustained push higher will reflect emergence of a new bullish paradigm.
The volume issue continues to bother me as I consider it too late to go long and too soon to short.