Market Summary:
Current Momentum/Trend Model (MOTR) Signal: NEGATIVE (Day Count = 19)
The SPX extended the rebound off the Aug 5 lows yesterday and has now recovered over 6% from that 5119 tick. The Index broke and closed above 5400 (closing price 5434) and is now approaching additional resistance at the 50dma (ref 5451) and the 61.8% retracement level at 5459. My Momentum/Trend Model (MOTR) has continued to improve and is close to a shift out of the current Negative reading. As I wrote the past two days, “I am conscious of a real reversion in price to the upside and the potential for a shift back to Neutral or even Positive if price continues to improve.” Any additional upside in today’s session will most likely produce a MOTR shift back to Positive.
Trade Support:
5400: Prior Support/Resistance
5338: 10dma
5316: 100dma
5200: Previous Support
5119: Aug 5 low
Trade Resistance:
5451: 50dma
5500: Jun 20 high and Jul 19 low
5669: Jul 16 high
