Market Summary:
Current Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 1)
Although the session was a bit choppy, the SPX Index extended its gain yesterday and my Momentum/Trend Model (MOTR) has now officially shifted back to Positive (as expected) after holding a Negative signal for 18 days. To recap, the previous MOTR Negative signal had a max profit of 6.46% and a strict signal profit of 1.61% (on a closing price basis). That’s impressive when you consider the SPX Index had a max drawdown of almost -10% and is still currently down almost 4% from the Jul peak. Price action yesterday pulled the Index to the 5455 level which is just below resistance at the 50dma (ref 5455) and the 61.8% retracement level (ref 5459) for the recent peak-to-trough move (Jul – Aug). As of the writing of this note S&P 500 front month futures are +13 handles suggesting the SPX Index will open the cash session above these resistance levels setting up for a test of 5500.
Trade Support:
5400: Prior Support/Resistance
5331: 10dma
5318: 100dma
5200: Previous Support
5119: Aug 5 low
Trade Resistance:
5455: 50dma
5459: 61.8% Retracement (Jul-Aug Peak-to-Trough)
5500: Jun 20 high and Jul 19 low
5669: Jul 16 high
