Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 1)
The SPX Index gapped up again yesterday, opening on the low at 5947 and grinding higher for the entire session. The Index was up 74bps on the day, hitting a high of 5983 and closing at 5973. The move higher off the Trump win and Republican sweep this past Tuesday is nothing short of parabolic. Price continues to find confirmation with momentum, volume and spot VIX all falling in line. The ICAP Momentum/Trend (MOTR) Model has shifted to Positive. I would say it was close for the past two sessions but simply needed some time to catch up to this 3-session, +4.56% move. Just like my father at the buffet, he may get there after the initial crowd, but he always gets his money’s worth. I still see 6000 as a locked in upside target. On a trading basis I am looking for retracements within this move higher and would look for 5947 and 5864 to act as support.
Trade Support:
5947: Nov 7 Open/Low
5900: Round Level
5878: Projection Level
5864: Nov 6 Open/Low
5800/5796: Oct 9 High
5733: Sep 19 High
Trade Resistance:
5970: Projection Level (broken)
6000: Even Target
