Market Summary:
The SPX gained ~60bps during yesterday’s session closing at the previously identified resistance level of 5666 (C). The A, B, C cluster of resistance discussed yesterday held through the session which, in my opinion, has created a very clean and growing range of supply on top of the index. My Momentum/Trend (MOTR) model continues to hold a Neutral reading as there is consistent negative divergence between price and momentum/trend. As I wrote yesterday, “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”. Lastly, I would note that as of the writing of this note the S&P 500 front month futures are trading down ~1% in the overnight session.
Trade Support:
5562: Jul 8 low
5589: 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)
