Market Summary:
Current Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 5)
The SPX was lower on the day for just the second time in 11 sessions, closing at 5597. Note, the 5622 resistance level highlighted yesterday did hold. The Index has now seen a trough-to peak run of 9.79% since hitting the low of 5119 on Aug 5. My Momentum/Trend Model (MOTR) Signal remains Positive and is now in its 5th day. The current return on this signal is +2.60%. I would note that the MOTR Signal is beginning to moderate and VIX term structure has slowly begun to shift back towards a more neutral stance. While these factors, along with yesterday’s pause in price, are not necessarily negative they do remind me that the downside risk grows as price approaches the previous high of 5669. I will continue to watch for divergence and increased risk of price reversion.
Trade Support:
5500: Jun 20 high and Jul 19 low
5474: 50dma
5439: 10dma
5400: Prior Support/Resistance
5332: 100dma
5200: Previous Support
5119: Aug 5 low
Trade Resistance:
5622: Jul 17 high
5669: Jul 16 high
