Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 8)
The SPX Index was down 18bps on the day in what was an indecisive and relatively sloppy session. The high/low spread for the day was 42 handles while the open/close spread was just five. The low of the day was 5824, which acted as a test of support on the 10dma (ref 5821). Surprisingly the ICAP Momentum/Trend (MOTR) Model remained Positive. However, the signal is weak and very close to shifting to Neutral. Overall, I continue to see the current set up as extended and losing momentum. A push to the upside through 5878 with expanding momentum would be very positive. However, the longer the Index churns at current levels the more likely it is that we fade back towards support at 5800 in the near term.
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
