As of Tuesday, July 19, 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 stock market continued a topping consolidation price pattern today. There is a chance of additional near-term upside in price, although the market has stopped right at our 2170 target level on the S&P500 Index.
What is more likely is the beginning of some volatility along with sell-offs in stock prices as the market establishes new support levels following the recent breakout higher in price.
Liquidity indicators are also consolidating in a sideways pattern at the top of the recent range, which bodes well for a resumption of the stock market rally after this consolidation/mild correction period.
So for now long equity positions should be held, and if we get the volatility and price drops in stocks we are expecting, then buying into that weakness will most likely be advised as long as the liquidity situation remains as bullish for stocks as it currently is.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.