As of Friday, August 4, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
OK, we cry “Uncle!” it’s time to buy this market! The Dow Jones Industrial Average is up at a record close for the 9th straight day. Got to mean it’s time to buy and not sell, right?
Well here’s a little something to think about over the weekend:
This is a chart of Sotheby’s (BID) and the cash S&P500 Index (SPX) plotted using the Elder Impulse System (read about it here). Look who’s reaching down well past their 50 day moving average and stretching to touch their 200 day moving average!
Why Sotheby’s you say? Because as one of the world’s largest and oldest brokers of fine and decorative art, jewelry, real estate, and collectibles, it’s an excellent barometer of what the 1 percent (and better yet probably the one-tenth-of-one-percent) are feeling about the economy. Honestly I’m not sure why it’s such a good early alert for what’s going to happen in the stock market, either up or down, but it’s effective and almost always right on.
When Sotheby’s makes a move like what you are seeing on the chart above, the stock market will follow, it’s just a question of when. I’ve seen BID show a “tell” for a stock market move anywhere from a few days before the move to more than a month before.
So the question here isn’t “if”, it’s “when”, and right now after 9 consecutive days of record high closes in the Dow Jones Industrial Average, and 13 straight days of the S&P500 Index closing within a tight 7 point range, something is about to give. Pressure is building.
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.