Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 2)
As I stated in the Oct 10 note, “the Index seems poised to break higher through the 5800 level with a retest of 5760 (now support) likely to occur first. I am watching for that re-test and/or need the MOTR Signal to fully confirm with a shift to outright Positive”. That was written coming off the Oct 9 close at 5792. The SPX Index did in fact re-test 5760 on Oct 10 (low 5764) and proceed to break out above 5800 during Friday’s session, hitting a high of 5822 and closing at 5815. Confirmation came as the ICAP Momentum/Trend (MOTR) Model Signal shifted to Positive on Oct 10. Today’s cash session will mark day three of the current Positive signal. I see risk currently as skewed to the upside with 5878 as the next upside target.
Trade Support:
5796: Oct 9 High
5760: Previous Resistance
5733: Sep 19 High
5686: Sep 19 Low
5615: Sep 18 Low
5600: Previous Support/Resistance
Trade Resistance:
5878: Projection Level
