As of Friday, May 5, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
We have been talking a lot about a massive double-top formation in the S&P500 Index Futures. As of Friday this formation may have finally completed as the Futures made a higher high in price but on negatively diverging technicals. There is still the possibility that the futures will extend slightly higher to the 261.8% Fibonacci Retracement level from the Summer high to the election night low, which resides at around 2430, however everything else is in place to indicate a double-top has occurred.
Stocks have rallied higher ever since the election, but higher highs in price have been met with lower and lower technical readings, indicating the rally is weak even though prices have moved pretty significantly higher.
The stock market is now extremely treacherous and we would use any further price strength around current levels to get out.
See the attached chart for details:
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.