Morning Notes — SPX and SVX Support Levels

Yesterday’s advance in the SPX puts the index in range of new highs this week.  But a loss of momentum over the prior four sessions still has us looking for a pullback to interim technical support near ~3630 and secondary support in the ~3510-3530 range.  We’ll look to add cyclical/value exposure if either level matches up with short-term oversold conditions.  Most major equity indices have experienced a recent loss in momentum including our cyclical/value bellwether, the S&P 500 Value Index (SVX).  We see more potential near-term downside in the SVX than we do in the broader SPX.  Secondary technical support for the SVX down in the ~1150-1180 range with a midpoint that implies a pullback of  ~7.5%, where the midpoint for SPX support implies a pullback of only ~4.5%.