Current ACAP Momentum/Trend Model Signal: NEGATIVE (Day Count = 3)
The SPX index lost 40bps during yesterday’s session, closing at 6370. My momentum and trend indicators continued to degrade. The counterbalance here remains that both my Spot VIX signal and VIX Term Structure signal remain “risk on”. The ACAP Momentum/Trend Model signal is Negative. The low on the day ticked at 6352, above the 6343 level which I highlighted yesterday. As I wrote yesterday, “I see risk as evenly skewed here. ACAP signal aside for a moment, I would be a buyer above 6400 and a seller below 6343 (Aug 20 low).” That said, I do nothing at 6370.
Trade Support:
6400: Previous All-Time High (July 28) (BROKEN)
6200: July 7 Low
6147: Previous All-Time High (Feb 19)
6100: Previous Support
6000: Previous Support
Trade Resistance:
6481: All-Time High (Aug 15)
6600: Mid-Point of Uptrend Channel
