Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEGATIVE (Day Count = 2)
The SPX Index closed up 21bps on the session at 5809. This was above the highlighted 5800/5796 support/resistance level and 82bps off the Oct 23 low (ref 5762). The Index remains below the support line of the short-term downtrend channel which extends back to the Oct 17 high (ref 5878) (see chart). Internals were flat to weaker on balance as Spot VIX (and Term Structure) settled back down to an unresponsive state. The ICAP Momentum/Trend (MOTR) Model remains Negative. The current signal has had a max return of +1.52% and a strict return (closing basis) of 71bps. All in, risk remains skewed to the downside for the near term but price volatility as we move through earnings and pre-election jitters is elevated. That said, I remain net short but have taken advantage of the current signal thus far and paired down that exposure locking in some profits off the current MOTR Signal.
Have a great weekend all!
Trade Support:
5835: 10dma (broken)
5800/5796: Oct 9 High (broken and re-taken)
5733: Sep 19 High
5686: Sep 19 Low
5615: Sep 18 Low
Trade Resistance:
5878: Projection Level
5970: Projection Level
6000: Even Target
