As of Thursday, September 1, 2016 at the close of trading EquitySurge™ has continued a buy signal for USA equities.
The stock market started the day in a sell-off again as the market open was greeted by an underwhelming manufacturing industry sector report. However by day’s end stocks had recovered with the S&P500 Index closing around the 2171 level, basically unchanged from yesterday’s close.
What we are observing over the past several days is heavy dip buying when stock prices are down in an overall macro environment that has a tremendously bullish liquidity backdrop. In plain english, investors are aggressively buying equity price dips, and this means that at some point soon prices are going to break out higher and exceed the recent highs.
The next major catalyst for the market is the Employment Situation Report, due out tomorrow morning. This report could set expectations for whether or not the Federal Reserve will raise interest rates this year.
At this point, with the bullish liquidity backdrop we are continuing to see, we are using stock price weakness as an opportunity to buy or add to existing long equity positions.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.