Market Summary:
My effort each day with this report is to stick to price action and momentum signals in a defined and simple way. My Momentum/Trend (MOTR) model is rule based and the basis of my market and sector view. That said, the past few reports have become a bit longer than expected delving into general market conditions and some old school Japanese Candlestick charting. So, here’s the rub – over the past 6 sessions the SPX index has achieved five new all-time highs but has continued to exhibit indecision and increased intraday price volatility. Additionally, my MOTR model has shifted and remains Neutral. This suggests that underlying momentum and trend is no longer confirming higher prices in the near term. The minor new highs achieved (A, B, C) have created very clean 20bp spread overhead resistance levels above the high of the Jul 11 reversal stick. All in (broken record time), I remain cautious at current levels under the current MOTR set up. Obviously, prices can resolve themselves to the upside but I am growing more confident each day that the model will shift to outright negative in the coming sessions and that support levels below will be tested in the near term.
Trade Support:
5562: Jul 8 low
5570: 10dma
5500: June 20 High
5400: Low/Base of the June 12 Gap
5300: Previous Resistance/Support
Trade Resistance:
5642: Jul 11 high (A)
5655: Jul 12 high (B)
5666: Jul 15 high (C)
