⇑⇑ Strong Buy
As of Thursday, January 31, 2019 EquitySurge™ has continued a STRONG BUY signal for stocks.
The SP500 Index is now very close to its 200 Day Simple Moving Average, which is just above us around the 2740 level.
Reaching the 200 Day Average will pretty much confirm the V-bottom recovery from the December, 2018 lows and position the market for a much greater number of participants to join the bull market rally in progress, as there are many long-only funds as well as many investors in general that will only go long the market if the SP500 Index is trading above its 200 Day Average. These new participants will only add fuel to the upward trajectory of the stock market.
This rally is being led not only by massive bullish liquidity, but in addition small caps are leading the way higher, which is even more bullish.
Any weakness or consolidation around the 200 Day Average (approximately the 2740 level), we would be buying.
RRG® Graph Commentary:
The indicators in the DAILY RRG® graph are now pointing up and out of the Lagging quadrant. This should have them in the Improving quadrant soon and set a bullish backdrop for higher stock prices and the continuation of the rally. The WEEKLY RRG® graph has the indicators still in the Leading quadrant, although they have weakened a bit.
Current DAILY RRG Graph:
Current WEEKLY RRG Graph:
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