As of Thursday, August 4, 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.
Liquidity indicators and oil have both turned back up over the last day, and oil in particular looks like it has established a strong base of consolidation and may now be ready to head higher.
Liquidity indicators are signaling that the pullback in the stock market may be done for now, which would likely set the S&P500 Index on a course for the 2200 level in short order.
So this is starting to look strongly like the stock market will head higher towards 2200 before a larger pullback will occur.
The USA Employment Situation Report will be released tomorrow morning before the regular market open, and this report is widely followed and frequently acts as a catalyst for a move in the market, so we should have a good idea of the market’s direction for the next couple weeks after tomorrow.
So at this point the best course may be to continue holding existing long equity positions and let the market show us whether it will correct lower now, or head higher towards 2200 before coming down again.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.