For the past eight months, money flows into the U.S. stock market have been either neutral or negative. This past week they broke out and went emphatically positive.

This is terrific news and should lead to more buying power and higher stock prices. This indicator is not necessarily immediate in its effects, but coincident with major moves pretty soon after. I anticipated this two weeks ago when I wrote that this market was on the verge of a major move to the upside.

During this move, we ought to see a broadening of market leadership to include more sectors and companies. In the past eight months, leadership became narrower and narrower. This was not healthy and led to some real distortions in the market. Hopefully this next move will begin to clear some of that up. We are likely to see some previous winners languish, while other stocks take the lead. This is part of what makes investing so interesting.

Stay steady, my friends.

The Lonely Bull