Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEGATIVE (Day Count = 8)
The SPX Index, after a down 1.86% day on Oct 31, attempted to bounce back on Friday. The Index opened up at 5723 and rallied early to a high of 5772. This was 1.22% above the Oct 31 low. The Index then failed, closing back below the 5733 level at 5728. I wrote in the last report that “While the risk of a snapback rally exists, risk overall remains to the downside.” I continue to believe this to be the case as we head into a week of massive price volatility coupled with a deep Negative signal from the ICAP Momentum/Trend (MOTR) Model. All in, I expect prices to swing, volatility to elevate further and the Oct 31 low of 5702 to be tested at a minimum. On a break below this level I would look for a test of the 5686 and 5615 levels below.
Trade Support:
5800/5796: Oct 9 High (broken)
5733: Sep 19 High (broken)
5686: Sep 19 Low
5615: Sep 18 Low
Trade Resistance:
5802: 10dma
5878: Projection Level
5970: Projection Level
6000: Even Target
