Market Summary:
Current Momentum/Trend Model (MOTR) Signal: NEUTRAL (Day Count = 2)
The SPX Index closed Friday’s session down 13bps at 5738. I would note that the key 5733 support level was violated on an intraday basis (low of 5727) but held on a closing basis. Overall, internals are flat to fading as the Index remains near all-time highs. The ICAP Momentum/Trend (MOTR) Model remains Neutral. After a modest 56bp gain on the previous Positive signal I am becoming more convinced that the current setup will resolve itself to the downside and that MOTR will shift to Negative over the next few trading sessions. A break of the 5733 support level on a closing basis would be a near-term negative and would set up for a quick test of the 5686 level. Under this scenario, if 5686 does not hold the Index could slide very aggressively back towards the 5500 level. That said, I do see risk here as skewed slightly to the downside but am waiting for MOTR confirmation.
Trade Support:
5733: Sep 19 High
5695: 10dma
5686: Sep 19 Low
5615: Sep 18 Low
5600: Previous Support/Resistance
Trade Resistance:
5878: Projection Level
