Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEGATIVE (Day Count = 3)
The SPX Index was extremely volatile during the first hour of the cash session Friday with a peak-to-trough move of almost 1%. The Index hit an early session high of 5746 then reversed to a low of 5702, stabilized and worked higher to close at 5751. On a positive note, the Index was able to hold the 5700 level and close above previously identified resistance at 5733 (Sep 19 high). On a negative note, the SPX Index remains below near-term resistance at 5760 with Spot VIX elevated and holding the 50dma (ref 18.58) with upward momentum. Additionally, VIX Term Structure remains biased towards “risk off” as slope is now positive, moving further from Contango and closer to Backwardation. The ICAP Momentum/Trend (MOTR) Model Signal remains Negative (day 3). 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.
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
