The assets held in mutual funds fell $219.2 billion in July – before the announcement that Standard & Poor’s had cut its rating of U.S. debt for the first time ever.
$1.1B Comes Back into Mutual Funds Investing in U.S. Stocks
Equity funds had estimated inflows of $1.48 billion for the week, compared to estimated outflows of $30.01 billion in the previous week.
via $1.1B Comes Back into Mutual Funds Investing in U.S. Stocks.
$40B Flows Out of Mutual Funds. In One Week.
In the week ending August 10, $40.3 billion was pulled out of long-term mutual funds of all types, the Investment Company Institute reported.
It’s a bear market
The Dow Jones Industrial Average rallied Tuesday on fairly light volume. Expect resistance at 11500. This is a bear market, with reactions to good news likely to be short — and declines from bad news severe. Target for the next decline is 10000*.
* Target calculation: 11000 – ( 12000 – 11000 ) = 10000
FTSE 100 tests support
The FTSE 100 Index is testing support at 5000. Breakout is likely and would offer a target of 4400*.
* Target calculation: 5000 – ( 5600 – 5000 ) = 4400
Europe crashes
Germany’s DAX Index is testing support at its 2010 low of 5400. 13-Week Twiggs Money Flow below zero warns of further selling pressure. Failure of support would offer a target of 4500*.
* Target calculation: 5500 – ( 6500 – 5500 ) = 4500
France has fallen well past its 2010 low, testing support at 3000. 13-Week Twiggs Money Flow again warns of further selling pressure. Breach of 3000 would test the 2009 low of 2500.
* Target calculation: 3000 – ( 3700 – 3000 ) = 2300
Secondary markets are as badly affected. The Amsterdam AEX Index fell below its 2010 low, while 13-week Twiggs Money Flow below zero warns of selling pressure.
* Target calculation: 300 – ( 340 – 300 ) = 260
TSX 60 headed for long-term support
Canada’s TSX 60 Index is falling sharply, headed for medium-term support at 665, but long-term support at 650 is just below. Breakout below 650 would warn of another down-swing, with a target of 580*.
* Target calculation: 650 – ( 720 – 650 ) = 580
Nasdaq breaks support
The Nasdaq 100 broke support at 2050, warning of a down-swing to 1900*. Follow-through below last week’s low of 2040 would confirm. The latest peak on 21-day Twiggs Money Flow, barely breaking the zero line, indicates strong medium-term selling pressure.
* Target calculation: 2050 – ( 2200 – 2050 ) = 1900
The Dow is headed for a similar test: follow-through below 10600 would confirm a down-swing to 9600*. Higher volumes indicate the presence of buyers and failure of support would prove seller’s dominance.
* Target calculation: 10800 – ( 12000 – 10800 ) = 9600
The S&P 500 is testing support at 1100 on the weekly chart. Failure would signal a test of 1000. 13-Week Twiggs Money Flow below zero warns of further selling pressure.
* Target calculation: 1125 – ( 1250 – 1125 ) = 1000
ICI – Long-Term Mutual Fund Flows, August 17, 2011
Total estimated outflows from long-term mutual funds were $40.29 billion for the week ended Wednesday, August 10, the Investment Company Institute reported today.
Dow threatens support
The Dow Jones Industrial Average fell sharply on Thursday, accompanied by strong volume. Failure of support at 10700 would complete the dead cat bounce, offering a target of the 2010 low at 9600*.
* Target calculation: 10800 – ( 12000 – 10800 ) = 9600