Market Summary:
Current Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 3)
The SPX Index again edged higher during Friday’s session, gaining 20 bps and holding above the 5500 level. The high for the session was 5561. Interestingly, this level represents minor trade resistance as it is also the low of the “doji” I had highlighted which formed back on Jul 8 (ref 5562) (reports are available for reference). I see the VIX Index is ticking higher this morning and will be watching the pre-market futures carefully. My Momentum/Trend Model (MOTR) remains Positive with a current return of +2.20%. As I stated last week, “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”.
Trade Support:
5500: Jun 20 high and Jul 19 low
5464: 50dma
5459: 61.8% Retracement (Jul-Aug Peak-to-Trough)
5400: Prior Support/Resistance
5362: 10dma
5324: 100dma
5200: Previous Support
5119: Aug 5 low
Trade Resistance:
5562: Jul 8 low
5622: Jul 17 low
5669: Jul 16 high
