As of Thursday, December 1, 2016 at the close of trading EquitySurge™ has continued a sell signal for USA equities.
Stocks sold off today, with the S&P500 Index closing down about 8 points to the 2191 level. Liquidity however took a significant leg lower today, increasing its warning to get out of long equity positions.
While it’s certainly possible that the S&P500 Index makes another retrace higher (which would be a gift as an opportunity to get out at higher prices), it’s more likely that a significant top may now be in place.
We are not going to opine about what may be wrong in the market at this point, but rather we will impress upon readers the reliability of liquidity as an early warning for where stocks are headed. And right now liquidity is telling us quite strongly that stocks are poised to decline, and possibly decline significantly. Therefore we would use any additional upside price strength as an excellent opportunity to liquidate 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.