Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEGATIVE (Day Count = 3)
The SPX Index hit an early session high of 5862 on Friday only to reverse and fade down to a late session low of 5799 and a closing print of 5808. The Index was clearly under pressure intraday but closed down just 3bps. I would note that the previously identified 5796/5800 support level did hold on an intraday and closing basis. Spot VIX did bounce off its 50dma (ref 18.23) and closed up 6.55% at 20.33. This action, along with Term Structure, was “risk off” but far from panic. The ICAP Momentum/Trend (MOTR) Model remains Negative. Overall, risk remains skewed to the downside with my expectation for price volatility increasing as we move through the final days until the election. That said, I remain net short in the portfolio with exposures paired down heading into next week.
Trade Support:
5800/5796: Oct 9 High
5733: Sep 19 High
5686: Sep 19 Low
5615: Sep 18 Low
Trade Resistance:
5834: 10dma
5878: Projection Level
5970: Projection Level
6000: Even Target
