Tuesday, September 19, 2017

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.

Weekly Index of Leading Economic Indicators:

US Weekly Index

While the weekly economic indicators are declining and the growth rate is REALLY declining, gross leverage is at record levels:

Gross Leverage 09082017

And American retail investors are as bullish on higher stock prices as they have ever been:

All-Time High Bullish Retail Investors 09182017

Here’s a look at the history of bull/bear cycles in the S&P500 Index as highlighted by Lance Roberts of Clarity Financial:

SPX Bull-Bear Long Term Cycles by Lance Roberts Clarity Financial 09182017

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.

SPX Bull-Bear Long Term Cycles-Red Dots-by Lance Roberts Clarity Financial 09182017

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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