As of Tuesday, August 22, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
Last Wednesday, August 16, 2017, we wrote that the S&P500 Index had retraced back up to the 2470 level, an area of critical resistance following the sell off of the prior week. The Index then sold off over the next several trading days, dropping to as low as the 2415 area during trading hours this Monday. As of today however the Index has retraced higher again to the 2450 level.
This 2450 to 2470 level is now a very important pivot zone, where it’s possible the market pushes higher again to a marginal new high, or fails from this area over the next few trading sessions, at which point much lower lows are likely.
What to do? We have been strongly selling this rally since the end of last year, and we continue to think that the stock market is only one bad news headline away from a complete meltdown.
The market has given multiple warnings to equity longs to get out near the all-time-highs, and that message has not changed at all.
We believe a very high percentage cash position is warranted right now given the risks and warnings in the market.
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.