Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 2)
The SPX Index added to the Trump Rally for the fourth session closing +38bps at 5995. The Index did briefly break above previously identified resistance at 6000, hitting an intraday high of 6012. This was also the fourth consecutive session in which the Index opened on the low and worked essentially higher for the entire session. The Index has now gained 4.77% from the Nov 5 Open through Friday’s close. Internals remain supportive, volume is above average (has faded slightly over the past three sessions) and spot VIX has been crushed, closing at 14.94 on Friday (lowest close for spot VIX since Aug 19). The ICAP Momentum/Trend (MOTR) Model remains Positive as risk remains to the upside. A breakout above 6000 seems very likely but as I wrote last week, “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
5864: Nov 6 Open/Low
5733: Sep 19 High
Trade Resistance:
5970: Projection Level (broken)
6000: Even Target
