As of Tuesday, January 3, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
Stocks gapped open higher on the first trading day of 2017, but the rally fizzled quickly and turned into a selloff for much of the day before prices climbed back up into the close. The S&P500 Index closed 19 points higher at the 2258 level.
We will be carefully evaluating equity price action during this first week of the New Year to gather information about where stocks are headed in the near term, but our most important indicator of stock price direction, liquidity, continues to warn us to get out of long positions and build up cash.
It’s hard to tell right now what 2017 may look like for equities, but we likely will see some price action over the next couple weeks that will give us a good idea, so for now we will wait in cash for the market to tell us what it has in store for the New Year.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.