As of Wednesday, December 14, 2016 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
Markets sold off today on news the Federal Reserve is planning 3 or more interest rate hikes for 2017, a surprise. The S&P500 Index closed down more than 18 points to the 2253 level.
This is the start of the expected turn down in the equity markets following the blow-off top we’ve experienced since the election, leading to the S&P500 Index Futures hitting the Fibonacci price target at the 161.8% retracement from the Summer highs to the election night low as of yesterday. The move lower from here could be steep and quick so be prepared.
We’ll know more about where a potential bottoming target may be as the decline unfolds, but resist the urge to jump back into longs too early as the market has some work to do to find real support.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.