As of Thursday, May 18, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
The decline we have been expecting for some time finally began in earnest yesterday. Today the S&P500 Index Futures retraced higher to almost exactly the 50% point between Tuesday’s swing high (the right side of the very large double-top we have been discussing on the daily charts) and this morning’s pre-market low. When the market can only retrace to the 50% point of a new trend move, it usually means the new trend will continue, which in this case is down.
Tomorrow being Friday, it could be that the resumption of the downtrend does not occur until next week.
In terms of price targets for this move down, we are expecting the first major stop to be the 2320 level, which is near the late March lows, followed by the 2270 level, the end of year highs for 2016.
As this decline pans out over the coming days and weeks we will have a much better idea of exactly how low prices can go.
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.