Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEGATIVE (Day Count = 1)
The SPX Index closed yesterday’s session essentially flat at 5709. However, there was plenty of price action and internal action to discuss. On an intraday basis the 5686 support level was again broken as the Index hit a low of 5674 matching the Sep 20 low. Additionally, internals faded as my momentum and trend indicators continued to degrade. Spot VIX has now increased by over 20% in just five sessions and the slope of the VIX Curve has moved significantly away from contango (risk on) towards backwardation (risk off). Finally, the ICAP Momentum/Trend (MOTR) Model has shifted (as expected) from Neutral to Negative. All said, I expect to see a true break below 5686 in the near term with initial downside targets of 5615, 5600 and 5500. Risk here is skewed to the downside.
Trade Support:
5686: Sep 19 Low
5615: Sep 18 Low
5600: Previous Support/Resistance
Trade Resistance:
5733: Sep 19 High
5878: Projection Level
