Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEUTRAL (Day Count = 3)
The SPX Index ended the session essentially unchanged at 6037 after hitting a session high of 6049 and low of 6007. The 6050 level was “sticky” heading into the Dec 18 selloff and has now acted as resistance. Market internals continued to improve. Spot VIX lifted a bit and Term Structure settled back from the extreme “risk on” slope observed over the past three sessions. The ICAP Momentum/Trend (MOTR) Model signal remains in Neutral. The Index is now ~50 points from the all-time high having run over 3.5% in just four sessions. I continue to believe that this snap back rally is to be sold. Objectively, my model and data points suggest the Index is set up for a significant move to the downside during Q1/Q2.
Trade Support:
6000: Even Target
5864: Nov 6 Open/Low
5100: Intermediate Term Downside Target
4800: Intermediate Term Downside Target
Trade Resistance:
6100: Dec 6 High
