As of Tuesday, September 19, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
It’s been about a week and a half since we last posted, and the stock market during that time has made a marginal new high in the S&P500 Index and the Dow Jones Industrial Average. Currently the stock market is trending sideways, and according to Charlie Bilello of Pension Partners, the last 5 trading days have been the most peaceful days in the history of markets with just a 0.24% average intraday trading range on the S&P500 Index. Sounds great, yes? Well let’s look under the hood a little.
While the weekly economic indicators are declining and the growth rate is REALLY declining, gross leverage is at record levels:
And American retail investors are as bullish on higher stock prices as they have ever been:
Here’s a look at the history of bull/bear cycles in the S&P500 Index as highlighted by Lance Roberts of Clarity Financial:
Also from Lance, notice how when the red dots begin to angle up sharply it signifies the beginning of a blow-off top period which is followed by a sharp sell-off and new bear market cycle.
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.