Current ACAP Momentum/Trend Model Signal: NEUTRAL (Day Count = 3)
The SPX index gained 27bps during yesterday’s session, hitting a new all-time closing high at 6512. Momentum and trend are steady/improving. My Spot VIX signal remains “neutral”. My VIX Term Structure signal remains “risk on”. The ACAP Momentum/Trend Model signal remains Neutral. Although I could come up with a long list of reasons why it shouldn’t, I believe the index is setting up for a ~5% move higher into year end. As I wrote yesterday, “the larger trade from here is down but there is still enough room to the upside to be patient, properly sized and long (on an ACAP signal shift).”
Trade Support:
6400: Previous All-Time High (July 28)
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
