Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEUTRAL (Day Count = 1)
The SPX Index closed up 55bps yesterday at 5975. The index was able to briefly break above resistance at the 6000 level (high 6021) but failed to hold through the close. The Index rallied very well through the beginning of the cash session but took a hard turn around the London close, fading over 1% peak-to-trough into the closing bell. While this price action was indecisive, market internals did improve. Momentum continued to strengthen as Spot VIX and VIX Term Structure continued to settle in a “risk on” position. The ICAP Momentum/Trend (MOTR) Model signal has shifted back to Neutral from Negative. The index seems poised to push even higher off the recent double bottom at ~5830 but I would continue to treat this as a short-term trade. All longer-term signals and data points continue to suggest that the greater near-term move is to the downside.
Trade Support:
5864: Nov 6 Open/Low
5830: Dec 20 and Jan 2 Lows
5700: Oct 31 Low/Bottom of Gap
5100: Intermediate Term Downside Target
4800: Intermediate Term Downside Target
Trade Resistance:
5850: Nov 7 Low
6000: Previous Support
6100: Dec 6 High
