Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: NEGATIVE (Day Count = 11)
The SPX Index hit an intraday low on Friday at 5666 (down 1.26% from previous close and down 7.83% from peak), then rallied to close +55bps at 5770. The index remains under pressure, smashing through the previously identified support level at 5700 on an intraday basis. This level is extremely significant as I have identified it as the base of the topping pattern back in December. The breach of this level was damaging. A close below this level will be the beginning of the next leg down for this move. The ICAP Momentum/Trend (MOTR) Model signal remains Negative. As always, I would be ready for snap back rallies understanding that the greater move in the coming months should bring the index to the 5500 and 5000 levels.
Trade Support:
6130: Previous Resistance (BROKEN)
6100: Previous Resistance (BROKEN)
6000: Previous Support (BROKEN)
5850/5900: Jan 14 / Jan 15 Gap (BROKEN)
5725: 200dma (BROKEN/RETAKEN)
5700: Previous Support Sep/Oct (BROKEN/RETAKEN)
5500: ~10% Move Peak-to-Trough
5500: ~20% Move Peak-to-Trough
Trade Resistance:
6250: Measured Move
6400: Measured Move
