A couple of quick notes:
1) TrimTabs notes that investors took $10 billion out of U.S. equity funds in the first four trading days of 2008, and an additional $12.1 billion out of U.S. equity ETFs. That is a lot. How much? The worst month for outflows was May of last year, when $8.4 billion was pulled out. That's $8.4 billion FOR THE WHOLE MONTH; $22.1 billion was taken out the first four days of 2008.
Of course, such extreme pessimism often indicates at least short-term trading bottoms.
2) All sorts of indicators of a technical sort have been going off in the last few days. Richard Russell at Dow Theory Letter told me this morning that a bear market was reconfirmed as the Dow Industrials broke below their November 21 lows. But there are others as well that have flashed sell signals.
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