As of Friday, May 19, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
The sell-off we’ve been expecting took hold this week and generated a 40+ point decline on Wednesday, which subsequently was reversed back higher into Thursday and Friday. Stocks ended down for the week but well off the lows on Wednesday.
This is the opening salvo in what should turn into a steep and scary correction, or even the beginning of a bear market. However we are going to have to see how the decline develops over the coming days and weeks. At this point there is plenty of time for the market to rotate again in a range.
This coming week will tell us a lot about the market’s next intentions regarding this decline. We would be patient and observe on Monday and Tuesday, and then evaluate what things look like after that.
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.