As of Monday, December 12, 2016 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
The S&P500 Index hit our Fibonacci retracement target from the Summer high to the election low at the 161.8% retracement of 2261 today. The intraday high was 2264, and the S&P500 Index closed at the 2257 level.
Take a look at the chart from December 8, 2016 projecting this price target, and then the second chart from today.
This level will be an important inflection point as it could be a significant price top for the market, or it will be a consolidation point for another leg higher. However with what liquidity is telling us, this level is more likely to become a significant top. If that is the case the market could certainly rotate around this area into the end of the year, or even move slightly higher before turning down.
Liquidity is maintaining its warning about remaining long this equity market, so this fibonacci price target level represents an important opportunity to continue liquidating longs.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.