Wednesday, July 17th, 2024

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)

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