Investors poured another $12.4B into global equity funds in the week ended Wednesday, with BAML's Michael Hartnett saying another $8B-$9B of inflows over the next two weeks would trigger a contrarian sell signal in his firm's flow-based model.
This would coincide with BAML's Bull & Bear Index, which is getting a little to bullish for comfort. Fund manager cash levels were at 4.4% in October. A dip below 4% in November, says Hartnett, would trigger a bright red Sell alert.
Still coming to grips with the slightest hawkish twist to the FOMC statement yesterday afternoon, S&P 500 (SPY) futures are down 0.25% and the Nasdaq 100 (QQQ) is off 0.45%. Facebook soared after a big earnings beat last night, then actually turned red during the earnings call, but is now higher by 3% in the premarket.
Europe opened to the downside, but is now mostly higher, and Asia was solidly lower overnight.
Treasury yields have regained some of their composure, the 10-year yield falling 3 basis points to 2.51%, after shooting higher yesterday afternoon post-statement. Gold's off 1% to $1,.335 per ounce.