Market Summary:
Current ICAP Momentum/Trend Model (MOTR) Signal: POSITIVE (Day Count = 2)
The SPX index gained just 16bps on the session closing at 5776. The day’s price action formed a small doji with a high/low spread of 26 points and an open/close spread of just one point. Natural indecision/pause as the index begins to encounter more significant resistance from 5750 up to 5900. Momentum and trend continue to improve from what were very extended levels to the downside. Spot VIX remains “risk on” while VIX Term Structure is neutral. The ICAP Momentum/Trend (MOTR) Model signal remains Positive. Additional near-term upside is likely. That said, the intermediate and long-term signals are much less bullish and suggest to me that the greater risk overall remains skewed to the downside.
Trade Support:
5500: ~10% Move Peak-to-Trough
5000: ~20% Move Peak-to-Trough
Trade Resistance:
5700: Previous Support Sep/Nov (BROKEN)
5750: 38.2% Retracement Peak-to-Trough (BROKEN)
6000: Previous Support
6100: Previous Resistance
6147: All-Time High
