The SPX Premarket is up 2 points as I write. It is no surprise to read that bullish fund flows are back. ZeroHedge writes, “The bullish fund flows are back. This is how Bank of America summarizes the latest EPFR capital flow sentiment: "Loving Wall Street: $15bn equity inflows + $5bn HY/IG inflows + 6 straight weeks of commodity inflows = investors are "risk-on."

Bank of America may be “talking” its book.” The information may be correct, but the conclusion may be flawed.

We learn this morning that personal income and personal spending have missed expectations. Personal savings, on the other hand, is up.

Employee compensation dropped in September. Do we see a pattern here?

The U.S. avoided a debt default as congress passed a new fiscal plan with an increased debt ceiling. They have kicked the can into 2017.

TNX made a opened higher, but retreated beneath yesterday’s close. This may be the reversal we have been waiting for, as funds flow back into Treasuries. This move has formed a Bearish Flag with a minimum target near 15.00.

The Head & Shoulders formation comes from the weekly chart, so this formation may be more appropriate. The move may be large, nonetheless.

Gold is heading lower this morning, with the futures having bottomed at 1140.00. This means that gold has lost all nearby Model Supports and may decline more deeply after a brief pause.

All the best,

Regards,

Tony

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As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals

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