Monday, October 17, 2016

As of Monday, October 17, 2016 at the close of trading EquitySurge™ has continued a strong buy signal for USA equities.

The stock market was weak today with the S&P500 Index closing down 6.5 points to the 2126.50 level.

As mentioned over the weekend, liquidity measures have reached a new high for 2016 as of Friday, but stock prices are well below their 2016 highs, so a divergence is developing and growing. At some point this will reconcile, and as long as liquidity stays at these bullish levels, the reconciliation will be for stocks to play catch-up and head to new highs as well.

However the timing of that move is elusive, especially considering the multitude of issues out there now. But you do not want to miss the move higher in stocks as it could be very strong and steep, so the best course may be to keep using stock 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.

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