Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 6)
The SPX Index was relatively unchanged on the day yesterday, closing down just 4bps from the previous close. This close to close move aside, the Index was heavy all day opening near the session high (ref 5875) and closing near the session low (ref 5841). The high on the day was 5878.46, again testing the previously identified 5878 resistance level (see chart). Resistance held and the Index faded. Internals have degraded but surprisingly not enough to shift the current market structure. Spot VIX continued to fade, closing the session at 19.11. VIX Term Structure continues to slide closer to “risk on” as well. The ICAP Momentum/Trend (MOTR) Model remains Positive. All said, the Index feels “toppy”, but risk remains skewed to the upside. I am watching for a breakout above 5878 in the near term.
Have a great weekend!!
Trade Support:
5800/5796: 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
