As of Monday, august 15, 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 had another narrow range consolidation day today at the very top of recent prices and even managed a marginal new all-time-high close around the 2190 level on the S&P500 Index.
Liquidity indicators continued to rise today as well, a strong indication of underlying support for higher stock prices.
However we still think reaching the 2200 level on the S&P500 Index is going to cause the market to pause again and sell off to find out where support levels now reside. How this correction/pullback takes shape we do not know yet, but major round number levels achieved after a breakout move higher such as we’ve just had are usually strong price targets, after which the market will typically retrace back down.
For now, as we have been for the past several weeks, we continue to just hold existing long equity positions with an eye towards the 2200 level on the S&P500 Index as a likely level from which a decent but temporary correction will ensue, which should become a very nice buying opportunity to add positions at lower price levels.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.