That state so far appears to be, in a word, rocky. Bob Pisani for Trader Talk has a few points about ETFs and investments. He notes that TrimTabs shows investors pulled out $10 billion from U.S. equity funds over the first four trading days of 2008. An additional $12.1 billion was taken out of ETFs specifically. Compare this to last May when $8.4 billion was pulled out – that’s the total for the whole month. In the first four days of 2008, $22.1 billion was taken out.
All sorts of technical signals are going off. Richard Russell at Dow Theory Letter said to Pisani that a bear market is confirmed, as the Dow Industrials broke below November 21 lows.
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