Current ACAP Momentum/Trend Model Signal: NEUTRAL (Day Count = 2)
The SPX index gained 61bps during yesterday’s session, closing at 6263. Despite this gain, my momentum and trend indicators continue to degrade and/or flatline. The slight negative divergence I have been noting over the past few days is continuing in a gradual and uniform fashion. My Spot VIX signal is “neutral”. My VIX Term Structure signal is “risk on”. The ACAP Momentum/Trend Model signal is Neutral. Overall, I do feel that this leg of the rally is extended and is losing steam. I am sticking to the Neutral call here and expect price to retrace to the downside in the near term.
Trade Support:
6200: July 7 Low
6147: Previous All-Time High (Feb 19)
6100: Previous Support
6000: Previous Support
Trade Resistance:
6284: All-Time High (Jul 3)
6390: Fibonacci Projection (Aug ’22 Low to Feb ’24 High)
