Current ACAP Momentum/Trend Model Signal: POSITIVE (Day Count = 12)
The SPX index lost another 50bps during yesterday’s session, closing at 6604. This competes a 3-day, down 1.33% move. Although price has faded, this move has been well contained. The index has found support, as expected, at 6600 and at the 20dma (ref 6561) which is included in the Bollinger Band overlay. That said, momentum and trend indicators have faded significantly. My Spot VIX signal remains “neutral”. My VIX Term Structure signal remains “risk on”. The ACAP Momentum/Trend Model signal remains Positive but is extremely close to a direct flip to Negative. This will be watched closely but for now I would be a buyer of the index as risk remains skewed to the upside.
Trade Support:
6600: Previous Resistance (TESTED)
6400: Previous All-Time High (July 28)
6200: July 7 Low
6147: Previous All-Time High (Feb 19)
Trade Resistance:
6802: Fibonacci Projection (123.6%)
7035: Fibonacci Projection (138.2%)
