As of Tuesday, April 26, 2016 at the close of trading EquitySurge™ has continued a hold signal for USA equities. This signal means to hold existing long stock market positions, but do not buy additional positions.
The market had another sideways consolidation trading range day today in anticipation of an announcement by the USA Federal Reserve at the conclusion of their two day meeting tomorrow. As is typically the case, Federal Reserve announcements act as catalysts for the market, and tomorrow is likely to be a more volatile day after the announcement.
The Bank of Japan also is expected to make an announcement about any changes to their monetary policy overnight tomorrow night. It is possible the Bank of Japan announces more aggressive stimulus measures, so the likelihood of their announcement acting as a catalyst for the market is higher than usual for this meeting.
Liquidity indicators measuring money flow into the stock market are still significantly supportive of higher prices, but there are some other indications that the market may need to drop in price in order to verify price support levels before heading higher in a resumption of the bullish trend.
A price drop or mini-correction could be sharp, but quick, and most likely will represent a buying opportunity, so we will watch closely for any substantive change to the liquidity indicators in the event of a sell off to see if they deviate from the strongly bullish stance they are currently showing.
In the meantime long equity positions should be held, but no new long positions should be added until after we see what the next couple of trading sessions bring following the Federal Reserve and Bank of Japan catalyst events.