The call for this week: Last week saw the highest flows into stock funds in six years. Those flows, over the past two weeks, have lifted the broadest-based index, the Wilshire 5000, by $500 billion! That rally has caused the Wilshire to make a much clearer upside breakout than the SPX; it is closer to its all-time 2007 high than the SPX (see chart on page 3). I think the Wilshire is eventually pointing the way higher, despite the current near-term overbought condition. This week should tell if it is a true upside breakout, or if we will need to spend some more time consolidating before trading higher…
