Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 1)
The SPX index gained 30bps on the day, closing at 5987. Price action was somewhat indecisive with a high/low spread of 57 points and an open/close range of just five. Essentially, price swung drastically from high to low but gained little ground by the end of the day suggesting buyers and sellers are in a stalemate at the moment. Although resistance at 6k was broken on an intra-day basis the index could not hold this level for the close. Spot VIX closed at 14.60, ~20% below the recent peak and Term Structure suggests there is additional upside for the SPX in the near term. The ICAP Momentum/Trend (MOTR) Model has shifted to Positive from Neutral. Although the Index feels extended to the upside once again, it seems likely that the Index will continue to lift into year end. I would be watching for a breakout above 6k with expanding internals and volume as an indication that a new leg higher has begun. A breakdown below 5947 would set up for a reversal and a retest of support at 5864.
Trade Support:
5947: Nov 7 Open/Low
5864: Nov 6 Open/Low
5783: Nov 5 High
5733: Sep 19 High
Trade Resistance:
5976: Nov 9 Open/Low (broken)
6000: Even Target
6017: Nov 11 High
