Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEUTRAL (Day Count = 4)
The SPX Index was down 1.11% on the day Friday, closing at 5970. There was clearly a push out of equities as the Index opened on the high (ref 6006.17) and hit a low of 5932, breaking below the 50dma (ref 5940) once again on an intraday basis. All said, support at 6000 did not hold, market internals faded and Spot VIX hit a three-day high at 18.45. The ICAP Momentum/Trend (MOTR) Model signal remains in Neutral but a second session like Friday will cause a shift back to Negative (which I expect). As I wrote last week, “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 (BROKEN)
5864: Nov 6 Open/Low
5100: Intermediate Term Downside Target
4800: Intermediate Term Downside Target
Trade Resistance:
6100: Dec 6 High
