As of Thursday, October 6, 2016 at the close of trading EquitySurge™ has continued a strong buy signal for USA equities.
The stock market was mostly flat today, with the S&P500 Index finishing up 1 point at the 2161 level.
All eyes are on the Employment Situation Report release tomorrow morning, which has the potential to set the course for the markets for the remainder of the year.
With US Treasury bonds having sold off in price and up in yield over the course of the last couple weeks, and the US dollar-Japanese yen currency cross strongly increasing over that same time, the table is set for another hike in rates by the US Federal Reserve. Although this time it appears the stock market is ready to accept the rate increase as a sign of continuing recovery and slow-but-steady growth in the US economy.
Liquidity, which measures the flow of money into the stock market, is telling us that the backdrop for stocks is extremely bullish for higher prices. This is very different than this time last year when liquidity was drying up and warning us to get out of the stock market.
With the extremely bullish liquidity signals for higher prices in the stock market, we will continue using any price weakness as an excellent 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.