Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEUTRAL (Day Count = 1)
The SPX Index was down just 5bps on the day, closing at 5851. As benign as that seems, the session was a bit more volatile with a wide high/low range of 5863/5821, a break of support at the 10dma (ref 5831) on an intraday basis and a continued inability of the Index to break out above 5878. The ICAP Momentum/Trend (MOTR) Model shifted from Positive to Neutral as internals continue to degrade. I continue to see risk skewed slightly to the downside from current levels and expect a test of support at 5800 in the near term. That said, I would not be surprised if there was a derisking of assets heading into the election which could create a nice trade to the downside over the next two weeks.
Trade Support:
5831: 10dma
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
