As of Monday, September 12, 2016 at the close of trading EquitySurge™ has continued a strong buy signal for USA equities.
On cue the stock market opened higher today off the lows set during the overnight futures session, and continued climbing all day to finish up 31 points on the S&P500 Index at the 2159 level. Is this a retrace higher before the stock market heads lower again? Liquidity is telling us the answer to that question is no, and rather the opposite, that stocks should continue heading higher.
The backdrop for the stock market is strongly bullish from the perspective of liquidity (money flowing into the market), and there is no better indication of the overall health and trend of the stock market than the level of money flowing into equities. The current liquidity backdrop is very different now compared to this time last year, and that is why price drops like we saw on Friday are excellent opportunities to buy and add to long equity positions.
As long as the level of money flowing into the market remains at these strongly bullish levels for higher stock prices, any price weakness over the coming days is a strong buy.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.