Market Summary:
Current Momentum/Trend Model (MOTR) Signal: NEUTRAL (Day Count = 2)
The SPX Index added 1.15% during Friday’s session closing at 5634. The Index hit a high of 5641, which was just shy of the previous day’s high of 5643. This is an interesting level as it is also the Jul 11 high (ref 5642) and the Jul 16 open (ref 5644). As you can see on the chart, Jul 11 was a large reversal bar heading into the Index peak of 5669 on Jul 16. There is clearly near-term resistance here as the Momentum/Trend (MOTR) Model enters the second day of the current Neutral Signal (the previous signal was a 6-day Positive Signal which returned over 2%). I do believe that a true breakout above ~5645 will lead to an aggressive move through 5669 and most likely to 5700. However, I am somewhat cautious here due to the MOTR Neutral Signal and developing signs that the VIX may be ready to lift higher once again. I will continue to focus on internals and a potential MOTR shift either to Positive or Negative.
Trade Support:
5562: Jul 8 low
5536: 10dma
5500: Jun 20 high and Jul 19 low
5487: 50dma
Trade Resistance:
5645: Previous support/resistance
5669: Jul 16 high
