Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEGATIVE (Day Count = 2)
The SPX Index continued its fade yesterday, hitting a low of 5977 and closing down 50bps at 5983. Since achieving an all-time high (ref 6147) and an all-time closing high (ref 6144) on Feb 19, the index has faded and closed below the 6130 support level, the 6100 support level, the 10dma (ref 6080), the 50dma (ref 6008) and the 6000 support level. Additionally, this price action has been confirmed by degrading momentum and trend as my volatility indicators are also confirming “risk off”. The ICAP Momentum/Trend (MOTR) Model signal remains in Negative. As I wrote yesterday, “I am fully convinced that, regardless of any “buy the dip” bounce we may see in the coming days, the much larger trade is to the downside. I will be selling into any SPX strength, watching for the break below 6000 and adding to my long volatility position.”
Trade Support:
6130: Previous Resistance (BROKEN)
6100: Previous Resistance (BROKEN)
6000: Previous Support (BROKEN)
5850/5900: Jan 14 / Jan 15 Gap
5700: Previous Support Sep/Oct
Trade Resistance:
6250: Measured Move
6400: Measured Move
