Current ACAP Momentum/Trend Model Signal: POSITIVE (Day Count = 14)
The SPX index gained 26bps yesterday, closing at 6661. The session ultimately showed some slight indecision with a high/low range of 27 points and an open/close range of less than one. That said overall action was constructive as momentum and trend indicators held their ground. 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. As I wrote yesterday, “I would remain long the index above 6600 and reduce exposure on a break below and/or shift in the ACAP signal to Negative.”
Trade Support:
6600: Previous Resistance
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%)
