Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 3)
The SPX Index continued its rally with a +77bps day closing at 5859. The session high was 5871, just 7 points from the previously identified upside target of 5878. As I said in yesterday’s note, risk is skewed to the upside. The ICAP Momentum/Trend (MOTR) Model Signal remains Positive with a current strict signal return of +1.38% and a max signal return of +1.58%. Spot VIX did close back below 20 and Term Structure (slope) is slowly settling back down towards zero. All said, the Index seems to have additional upside from current levels. A break above 5878 sets up for a potential test of 5970 and 6000. I would think this is the likely path but would expect some retracement over the coming sessions with a potential test of support at 5796/5800.
Trade Support:
5796: Oct 9 High
5733: Sep 19 High
5686: Sep 19 Low
5615: Sep 18 Low
Trade Resistance:
5878: Projection Level
5970: Projection Level
6000: Even Target
