Wednesday, April 27, 2016

As of Wednesday, April 27, 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 USA Federal Reserve announcement did in fact act as a catalyst for the stock market today. The S&P500 Index climbed from the morning lows around the 2080 area before the announcement to close after the announcement at the 2100 level, an eighteen point positive reversal.

The money flow liquidity indicators increased as well, signalling continued strong inflows into the stock market.

It is now likely the market will make a run to the all time high price of 2134 on the S&P500 Index soon, followed by higher highs.

There do remain some counter-trend signals in the market which could still trigger a short-term, sharp, downside correction, but if that happens it will most likely be a buying opportunity.

Tonight the Bank of Japan will make their announcement, and it is still very possible that this event could also act as a catalyst for the stock market.

So for now existing long equity positions should be held, but no new or additional positions should be bought. As mentioned before, this holding pattern the market has been in for the last couple weeks should resolve soon, and it is now likely the resolution will be to the upside with the resumption of the bullish trend higher in stock prices.

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