Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 4)
The SPX Index was negative for the first session since Nov 5 with a minor loss of 29bps, closing at 5983. Of greater significance, the Index has now stalled the past three sessions in a tight range at 6012, 6017 and 6009. Additionally, near-term support is being tested as I expected. I wrote in yesterday’s note, “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.” The Index did in fact test and break 5976, hitting an intraday low of 5960. I would also note that the previously identified resistance level at 6000 remains in place as the index could not hold above for the closing print. Volumes have faded to below average and internals are flattening. The ICAP Momentum/Trend (MOTR) Model remains Positive with overall risk skewed to the upside. That said, I will repeat what I said in yesterday’s note, “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
