Market Summary:
Current Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 2)
I was very “wordy” last Friday and the chart was looking like a bowl of my mother’s spaghetti (throw some beef and pork ribs on top please). That said, I did some cleaning and will be to the point today – I hope.
As expected, last week was extremely volatile for the SPX Index with a trading range of over 2% and intraday swings of as much as ~1.5%. Volumes were above average as Spot VIX hit a low for the week at 15.81. My ICAP Momentum/Trend (MOTR) Model shifted from Neutral to Positive on Sep 19 and remains there into today’s cash open. While I base my entire portfolio on MOTR, there is discretion as far as sizing and outright positioning. I do not make a habit of trading against the signal, but I do at times pair down exposure or step aside (go flat) if my gut is not in line. This is one of those times. The current set up is not as appealing as I would like it to be. With that all said, I am net long but I remain paired down substantially. The near-term support/resistance range which I am focused on is 5615/5733 (highlighted on chart). A breakout above 5733 with a Positive (confirming) MOTR Signal would be very bullish. There I would add significantly to my long exposure. Ahead of that I am net long, paired down and watching.
Trade Support:
5669: Jul 16/Sep 17 High
5645: Previous Resistance; Sep 11 High (ref 5642)
5615: Sep 18 Low
5604: 10dma
5600: Previous Support/Resistance
5562: Jul 8 low
Trade Resistance:
5733: Sep 19 High
5878: Projection Level
