As of Monday, August 28, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
After a pair of sell-offs and then retraces higher in August in the equity markets, it looks like more downside moves are coming thanks to North Korea launching a missile today which overflew Japan. S&P500 Index futures are down 15-20 points this evening on the news, and this development is only going to feed the market’s hunger for a catalyst to launch (pun intended) a much larger downside series of moves.
Here are a couple of updated charts.
Ratio Chart of Sotheby’s (BID) to S&P500 Index via SPY:
Percent of Stocks Above Their 200 Day Moving Average:
Without a doubt we have been WAY early in calling for a top in this market since the election last year, but now the situation is MUCH different than what it was in the weeks and first few months following the Trump election. We urge you to take a hard look at any remaining long equity positions you have and consider converting those to cash ASAP.
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.