Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEGATIVE (Day Count = 5)
After the Oct 7 move down of ~1% and test of support at 5686 the Index bounced back during yesterday’s session hitting a high of 5757 and closing up 97bps at 5751.13. This closing print brought the Index back above the 5733 resistance level and matches almost perfectly with the Oct 6 close (ref 5751.07). I continue to focus on the consolidation at all-time highs which began on Sep 19. The wider support/resistance range being 5686/5760 with an approximate mid-range at 5733. All of these price levels have been previously identified and all have been significant over the past three weeks. As the Index works through this range, the ICAP Momentum/Trend (MOTR) Model Signal remains Negative (day 5) with flat to degrading internals. Momentum and trend are relatively weak here and suggest that risk is skewed to the downside. I will continue to focus on a breakout of the 5686/5760 range in either direction with a confirming MOTR signal. As it stands, I am positioned net short in the ICAP Portfolio based on the current MOTR Signal and price action.
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
