Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 3)
The SPX Index gained a modest 10bps during yesterday’s session, closing at 6001. This marks the first close above the 6000 level for the Index and the fourth consecutive all-time closing high. That said, the day produced a relatively benign stick with a high/low range of 31 points and an open/close range of just 7. Internals were somewhat mixed as momentum continued to expand but volumes fell well below average. The ICAP Momentum/Trend (MOTR) Model remains Positive. Risk remains skewed to the upside but there are a ton of air pockets below. While I don’t think the Index will retrace the entire Trump rally, I do expect some of the recent gaps below to be filled in the near term. Support at 5976, 5947 and 5864 remain in focus and would be healthy levels for the Index to test and hold. That said, a break below 5864 would suggest a much larger move down is coming. Overall, it feels like a good spot to lighten up on some longs and take a breath.
Trade Support:
5976: Nov 9 Open/Low
5947: Nov 7 Open/Low
5864: Nov 6 Open/Low
5733: Sep 19 High
Trade Resistance:
6000: Even Target
