Friday, March 24, 2017

As of Friday, March 24, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.

We were traveling and away from the desk, but last week finally provided some fireworks in the stock market. Last Tuesday was a trend day to the downside, the first in a long time!

As of Friday the S&P500 Index Futures are sitting right on top of the rising trend channel, so the next few trading days will tell us a lot about what the market may have in store for investors.

At this point it looks like a retrace higher in prices may be coming this week, which will most likely be an excellent opportunity to liquidate long positions back near the highs. The target for the retrace is 2400 to 2430 on the Futures, the latter of which is the 261.8% Fibonacci Retracement from last Summer’s high to the election night low, a very powerful Fibonacci target. See the chart for details:

ES Screenshot 03242017

If we do not get a lasting retrace higher in prices soon, then the market will likely decline strongly towards the 2270 level on the Futures, which is the 161.8% Fibonacci Extension and the closest target below us, but it seems more likely right now that stocks will make one more trip up to the 2400-2430 Futures level first.

Either way caution is the word of the day.

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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s