Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 7)
The SPX Index gained 40bps on Friday closing the week at 5864. Although the Index gained 85bps for the week while marking some new all-time highs, resistance at 5878 continues to hold. This is concerning and as I stated last week, the Index feels “toppy”. The ICAP Momentum/Trend (MOTR) Model remains Positive, but the signal is weakening. All in, risk seems skewed to the upside but the setup is not as strong as I would like. With that, I am reducing long exposure expecting a potential shift out of Positive and back to Neutral over the coming days. If the Index surprises me and breaks out above 5878 then I will add that exposure back with more confidence than I have now.
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
