Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 3)
The SPX Index gapped up to open at 6081, hit a new intraday all-time high of 6100.81 and closed at 6086 (+61bps). Momentum, trend and VIX signals all remain strong as the Index essentially tested the previous all-time high of 6099.97 achieved on Dec 6. The 6 day, ~6% rally we have seen is now at a major inflection point. There will either be a “headline bomb” which derails the rally and creates a massive double top, or the Index will consolidate and rally through 6100 setting up for a run at 6400 (measured move). The ICAP Momentum/Trend (MOTR) Model signal remains Positive. This, along with the current internals suggests a breakout above 6100 is the more likely outcome. Price action and the MOTR signal will be key over the next few sessions.
Trade Support:
6000: Previous Support
5950: Nov 7 Low
5770: Bottom of Nov 5 / Nov 6 Gap; Jan 13 Low
5700: Oct 31/ Nov 4 Lows
Trade Resistance:
6100: Dec 6 High
6400: Measure Move
