Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEGATIVE (Day Count = 2)
The SPX Index closed just 17bps lower yesterday at 5699. The day showed plenty of indecision as the high/low range was 41 handles wide with an open/close range of just one single point. The support/resistance range which I have continued to focus on remains 5686/5733. To reiterate, this was the Sep 19 high/low range coming out of the Sep 18 FOMC meeting (50bp cut). We remain in this range even after having traded 10 sessions since Sep 19. The Index has attempted to breakout to the upside but failed at 5760 multiple times (Sep 26, 27, 30 and Oct 1). The Index has also attempted to breakdown and fail but has not closed below 5686 since Sep 18 (highlighted on chart). As of today, the ICAP Momentum/Trend (MOTR) Model is entering the second day of the Negative Signal. I continue to see risk as skewed to the downside and remain focused on near term support at 5686 and resistance at 5733 and 5760.
Enjoy the weekend!
Trade Support:
5686: Sep 19 Low
5615: Sep 18 Low
5600: Previous Support/Resistance
Trade Resistance:
5733: Sep 19 High
5760: Previous Resistance
5878: Projection Level
