Market Summary:
Current Momentum/Trend Model (MOTR) Signal: NEUTRAL (Day Count = 4)
Although the SPX Index was up just 16bps yesterday (closing at 5625) there was greater intraday volatility with a high/low range of almost 70bps. The high of 5631 was well below the previous session’s high of 5651 and shy of near-term resistance at 5645. As the Index continues to consolidate, the Momentum/Trend Model (MOTR) Signal remains in Neutral and is degrading slowly. I see risk here as balanced with a slight skew to the downside. As I stated yesterday, I have flattened out most of my long exposure and am now net short with plenty of dry powder available. I will continue to focus on internals and a potential MOTR shift to either Positive or Negative.
Trade Support:
5600: Previous support/resistance
5582: 10dma
5562: Jul 8 low
5500: Jun 20 high and Jul 19 low
5495: 50dma
Trade Resistance:
5645: Previous support/resistance
5669: Jul 16 high
