Market Summary:
Current Momentum/Trend Model (MOTR) Signal: NUETRAL (Day Count = 1)
The SPX Index had a massively wide and volatile intraday range yesterday with a peak-to-trough spread of ~1.30%. Post 2:00PM EST the index rallied to an all-time high of 5689 only to spin and churn its way to close on the lows at 5618. Price action was manic as we broke above our previously identified resistance level at 5669 only to fade back and close below both the 5669 and 5645 levels. This created what looked like a bearish reversal bar (shooting star) amid price chaos. Internals confirmed as my Momentum/Trend (MOTR) Model shifted from Positive to Neutral. All said, the set up seemed to be a massive head fake to the upside with risk shifting to the downside. I would note that the overnight session doesn’t agree as the S&P 500 e-mini futures for Dec (ESZ4) are trading up over 1.60% as of the writing of this note. If the SPX Index can follow suit during today’s cash session, I am sure the MOTR Signal will shift back to Positive. That remains to be seen. To be perfectly honest, I am truly neutral here waiting for the next few days of price action.
Trade Support:
5600: Previous Support/Resistance
5562: Jul 8 low
5554: 10dma
5514: 50dma
5500: Jun 20 high and Jul 19 low; Base of Aug 15 Gap Up
5400: Previous Support
Trade Resistance:
5645: Previous Resistance; Sep 11 High (ref 5642)
5669: Jul 16/Sep 17 High
