As of Tuesday, April 25, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
Stocks continued rallying higher today after yesterday’s huge gap-up at the open, however some of today’s gains were lost as stocks sold off into the close.
We are in the critical zone very near the 2400 level on the S&P500 Index Futures, the double-top target we’ve been talking about for weeks now.
This is the time to be extremely cautious of the equity market, and if you still have long equity positions you should strongly consider this retrace back to near the 2400 level as a gift and an excellent opportunity to get out of your long positions by selling high and moving to cash.
While it is certainly possible for the market to head even higher to our secondary target around the 2430 level on the Futures (the 261.8% Fibonacci Retracement from last Summer’s highs to the election night low), you are playing with the proverbial fire by staying long now.
We have said since early December of last year to sell into this move higher following the elections, and our goal here is to always try to lead investors in near bottoms and out near tops. Remember, the object of investing is to buy low and sell high. This is not the time to get greedy and stay long stocks; there will be a much better buying opportunity at lower prices coming soon.
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.