Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEGATIVE (Day Count = 2)
The SPX Index pushed to a high in yesterday’s session at 6116, closing +1.04% at 6115. This high came within 12 points of the Jan 24 all-time high at 6128. For the short term, this push was not at all what I expected and has the potential to create a move well above 6128 if internals can confirm. As of today, price action was certainly bullish, but momentum and trend remain flat. That said, despite this bullish price action, the ICAP Momentum/Trend (MOTR) Model signal remains Negative. There is no doubt that the aggressive whips and price action are leading to imbalance between price and momentum. My gut is that this will be resolved over the coming week or two. For now, I continue to see that resolution as coming to the downside.
Trade Support:
6000: Previous Support
5950: Nov 7 Low
5850/5900: Jan 14 / Jan 15 Gap
5770: Bottom of Nov 5 / Nov 6 Gap; Jan 13 Low
5700: Oct 31/ Nov 4 Lows
Trade Resistance:
6100: Established Resistance
6400: Measure Move
