As of Friday, June 23, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
We haven’t posted since two weeks ago on Friday, June 9, 2017 because there really has been nothing to report about the S&P500 Index. The index during that time made a slightly higher high but then dropped back down into a very tight trading range over the week ending this Friday.
However there have indeed been things going on elsewhere that are worth reporting:
- Over the past couple weeks oil has broken out to the downside with West Texas Intermediate closing on Friday at 43.17, down from the 48 level on June 7th.
- US 30 Year Treasury Bonds have broken out to the upside in price (yields down).
- Technology shares as represented by the QQQ ETF have retraced higher from the plunge lows made over June 9-10 to near the 61.8% Fibonacci Retracement, a key level where they may reverse lower.
- Non-Commercials (investors other than the large commercial traders) have reached a new record short position in VIX Futures. This means that a huge number of speculators are holding an all-time record bet against volatility rising. And from Charlie Bilello at Pension Partners: 7 out of the 20 lowest weekly closes on the VIX have occurred in 2017. Most peaceful market in history.
Keep your vigilance as there are more and more indications of a major market top already in place.
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.