As of Wednesday, November 9, 2016 at the close of trading EquitySurge™ has continued a strong buy signal for USA equities.
Stocks staged an enormous rally during the regular trading session today, after the S&P500 Index futures were down more than 100 points overnight. Today the S&P500 Index finished up almost 24 points at the 2163 level, just 30 points below the all-time-high set late in the Summer.
Why did futures sell off so much last night? Because the initial election returns showed the distinct possibility of a contested election too close to call that might have entailed days if not weeks of recounts and legal battles across the country, a worst-case scenario for the stock market. What happened instead? Later in the night it became obvious that a clear and uncontested winner would emerge, and a massive reversal higher in the futures began and continued into the early morning hours today and then into today’s regular session.
With the election now completed the stock market may be on a moon-shot trajectory back up to the all-time-highs around the 2194 level on the S&P500 Index and beyond. Volatility is collapsing back down which further supports higher stock prices, and liquidity is and has been telling us to buy all of the price weakness over the past several months.
The stage is now set for a massive rally into the end of the year and beyond. The 2150 level is now strong support, and if the market rotates around this level over the next few days, it is a place to buy and add to longs. The upside targets are now 2194, 2200, and perhaps 2300 or higher into the end of the year-beginning of next year.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.