Market Summary:
Current Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 2)
The SPX Index gained 1.61% during yesterday’s session, breaking above the previously identified resistance levels at the 50dma (ref 5460), the 61.8% retracement level (ref 5459) and the 5500 level. My Momentum/Trend Model (MOTR) flipped from Negative to Positive on the Aug 13 close. The return thus far on the current signal is +2.00%. The index seems to be bolting through air pockets on the way back up as it retraces the recent selloff with confirming momentum. While we may see some pause in this manic recovery the index seems poised overall to continue the move higher with 5600 as the next upside target. I will obviously be watching for divergence between price and internals as more significant warning signs of a renewed fade. Enjoy the weekend!
Trade Support:
5460: 50dma
5459: 61.8% Retracement (Jul-Aug Peak-to-Trough)
5500: Jun 20 high and Jul 19 low
5400: Prior Support/Resistance
5341: 10dma
5321: 100dma
5200: Previous Support
5119: Aug 5 low
Trade Resistance:
5669: Jul 16 high
