Very little fund flow occurs in the later part of the year. The bulk of it comes in January-May, probably tax refunds... lol. The worst time to ever be buying any equities and the Institutions know it. They start borrowing what shares they have into their accounts and shorting the markets or outright selling their capital out causing some substantial outflow into the Spring and Summer. I will like to build a chart analysis of this data and compare it to TOMO Fed injections, and US debt, foreign money flow. I bet there is a strong correlation.
First chart represents weekly inflow and outflow in quantity. The second chart represents accumulated Inflow\Outlook with the first week of Sept starting at Zero dollars. We've accumulated a net $600 billion additional dollar in the markets over the last year that were not there before.
did you notice, QQQQ 44 Jan07 Puts volume is higher than OI and Jan07 Call volume .. but monthly chart tells something else, which way will it go: resistance or break out? decrease in oil price will help to lift the market