As of Thursday, April 28, 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 Bank of Japan announcement overnight did act as a catalyst for the stock market, but in this case it was a catalyst for lower stock prices.
The market may be in the process of the mini correction we discussed yesterday. The liquidity indicators are still significantly bullish for higher stock prices, so this downtrend most likely will be a buying opportunity. However until there is more confirmation of this, existing long stock market positions should be held, but no new or additional positions should be added.
Stock prices have been in a sideways consolidation range for the past two and a half weeks, but during that time the liquidity indicators have climbed higher reflecting even more positive money flow support for higher stock prices. Unless the liquidity indicators turn sharply downward soon the most likely resolution of this divergence is for stock prices to accelerate up to the all time high of 2134 on the S&P500 Index and beyond.