Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 5)
The SPX Index was essentially flat on the session with intraday price action and internals telling a much more interesting story. The day was one of complete indecision with a high/low spread of 43 points and an open/close spread of just 0.37 points. On an intraday basis buyers pushed the index to a high of 6008 (current resistance) and sellers pushed the index to a low of 5965. However, by the close the Index remained exactly where it opened. Internals continued to flatten/fade slightly. Overall, this indecisive action could suggest that the recent five day, ~6% rally may be losing some steam. Follow through over the next few sessions will be key. The ICAP Momentum/Trend (MOTR) Model remains Positive, but the strength of the signal has faded. Overall, risk remains skewed to the upside, but I remain very focused on the potential for additional downside retracement and tests of highlighted support levels at 5976, 5947 and 5864. As I said in the past two reports, “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
6017: Nov 11 High
