Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEUTRAL (Day Count = 2)
The SPX Index closed down 47bps on the session at 6039. The index came close to a retest of support at 6000, hitting a low of 6012 just as Mr. Powell began speaking. The session was volatile with multiple 20+ handle swings. Momentum and trend indicators weakened further as spot VIX spiked intraday ~10% to a high of 18.08. The ICAP Momentum/Trend (MOTR) Model signal remains in Neutral. As I wrote yesterday, “Overall, I am neutral for the short term (taking advantage of price volatility) but see the greater risk longer term to the downside.”
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 / Jan 21 Highs
6400: Measure Move