Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 1)
The SPX Index was essentially flat on the day Friday, closing the session at 6114. The high came just within a point of the Jan 24 all-time high ticking at 6127. As price tests the top of the short-term resistance range (highlighted) momentum and trend have started to improve. Additionally, Spot VIX and VIX Term Structure are now in a “risk on” posture. The ICAP Momentum/Trend (MOTR) Model signal has shifted to Positive. To be objective, all signals for the neat term have cleared and are pointing to a breakout and additional upside to come. I have been neutral to negative over the past two months (which has been profitable) and expected an additional, substantial move lower. On that last point I was wrong. I must be objective here and call risk (for the near term) as being skewed to the upside. Watch the 6130 level as it will be key.
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
