The Labor Department reported that its Consumer Price Index fell 0.1% in December, the first decline since March, after a flat reading in November. The year-over-year increase was 1.9%, down from November's 2.2% gain. The core CPI, excluding volatile food and energy prices, rose 0.2% from the prior month and 2.2% from the prior year.
As tallied by the American Association of Individual Investors, bullishness is up by 5 points to 38%. Bearishness declined by 14 points to 29% and now sits one percent below its average of 30% since 1987. The New York Stock Exchange Bullish Percent tracks the percentage of NYSE stocks on point-and-figure buy signals. Readings above 70% (on a 0%-to-100% scale) suggest an overbought market; readings below 30% point to an oversold market. The BP has rebounded to 28% from 18% last week. This increase in the number of buy signals is an indication that the new uptrend is capable of being sustained. Exchange Traded Funds have become a popular vehicle for individual investors, but their low fees and liquidity often make them a tool for speculators.