As of Friday, February 24, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
Friday was a strange trading day in the equity markets. After opening decently lower the S&P500 Index consolidated for most of the day before shooting higher in the last half hour of trading to close up three and a half points at the 2367 level.
There isn’t much to say right now about the equity markets other than the warnings we have identified and talked about repeatedly, which only continue to become more dire:
- Liquidity warning about staying long this market.
- Volatility set up for a massive spike higher which would drive stock prices lower very quickly.
- Long USA Treasury bonds in a steady climb higher in price, drop in yield, indicating extreme disagreement between the stock market and the bond market. And we will always take the side of bonds in a disagreement like this.
- Low trading volumes at these all-time-high equity prices.
- Small caps now negatively diverging with other equity indexes.
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.