As of Wednesday, April 12, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
Here’s a mid-week update on the markets. Stocks should finish this basing, sideways trending they have been doing over the past couple weeks and start heading higher soon, back towards the 2400 level on the S&P500 Index Futures for a double-top.
Just when traders are starting to get nervous about an equity sell-off, stocks should start rising, and US Treasury bonds, which have been rallying during the recent stock weakness should begin selling off in price as yields rise again.
This will be what looks like a strong, quick rally back up to the 2400 level or even beyond towards the 2430 level, but indeed once we reach those price targets it’s likely to actually be a very large and important double-top.
If you are the aggressive type, then a long trade from current levels should get you a nice 50+ point trade on the S&P500 Index, but make no mistake, you are playing with fire on this retrace higher. A double-top formation is looming on the charts and the technicals keep building a strong case that this second venture to the 2400 level will be a fleeting one.
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.