Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 4)
The SPX Index closed the session down 43bps at 6117. The index did hit a low of 6084, breaking below two of my highlighted support levels at 6130 and 6100. The 6100 level was regained by the close, but the index remains below the 6130 level. As I mentioned yesterday, risk remains to the upside in the near term if internals continue to improve and 6130 begins to act as support. Neither held true during yesterday’s session. Bottom line, while November, December and January were very productive months as far as the MOTR signal and ICAP P&L, February has been a month of cross currents and signal swings. That said, although the ICAP Momentum/Trend (MOTR) Model signal remains Positive I do not like the current set up. I am positioned relatively flat waiting patiently for a better trade in either direction.
Trade Support:
6130: Previous Resistance (BROKEN)
6100: Previous Resistance (BROKEN AND RECOVERED)
6000: Previous Support
5850/5900: Jan 14 / Jan 15 Gap
Trade Resistance:
6250: Measured Move
6400: Measured Move
