Wednesday, August 16, 2017

As of Wednesday, August 16, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.

The stock market has retraced higher after the sell-off last week. The retrace has taken the S&P500 Index back to a critical resistance level around 2470.

Here are a couple of charts to consider:

Corporate stock buybacks have been a major tailwind for higher stock prices since the 2009 lows. After peaking in late 2010 buybacks have been declining ever since and have now gone negative at an annual rate of 20 percent per year.

US Share Buybacks Declining

General Electric (symbol: GE) has been an excellent bellwether for the economy. It’s stock price decline has also been an early canary of looming recessions. Chart courtesy of Raoul Pal of The Global Macro Investor.

GE Recession Canary

Here are updates to the charts we watch carefully. All of these charts use the Elder Impulse System to color Heikin-Ashi candles. Green signifies an uptrend, red a downtrend and blue retrace/pause/consolidation. The larger the candle, the stronger the impulse trend.

Ratio chart of Sotheby’s (Symbol: BID) and the S&P500 Index via SPY:

BID-SPY with Elder Impulse 08162017

High Yield via HYG:

High Yield 08162017

Long US Treasury Bonds via TLT:

Long Treasury Bonds TLT 08162017

Mid Caps via MIDU

Mid Caps MIDU 08162017

Small Caps via IWM:

Small Caps IWM 08162017

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.

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