As of Friday, February 17, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
Markets started off down on Friday, but ended up marginally at the close. Equity futures were generally up during the abbreviated session on President’s Day Monday. Regular trading resumes as of Tuesday.
Right now with the S&P500 Index sitting about halfway between 2300 and 2400 it seems the short term trading is going to be dominated by policy sound bites and talk of coming proposed legislation the Trump administration will be forwarding to Congress, such as repeal/replace of Obamacare and potential corporate and individual tax reductions.
However, Tweets from The President and/or press releases from the administration that in any way delay or reduce the likelihood of those reforms, especially tax reductions, will have a negative impact on equity markets.
We continue to monitor the various measures of market health, and in our view they almost all look questionable or even down right Code Blue.
Therefore we continue to advocate that investors harvest profits from long equity positions and build cash balances until we see more of what the market has planned over the next few weeks.
If you would like to review the EquitySurge™ trading signals generated in 2016 and so far in 2017 please see the Trading Signal Performance Chart page.