The ICI fund flow data is out and it is ugly: in the past week, investors pulled money from every single strategy for a total outflow of $10.4 billion. As usual the biggest drop was in domestic equities, which saw $8.76 billion in withdrawals, the largest since the Flash Crash when investors yanked $13.4 billion. This is the 15th consecutive week of outflows, and brings the year's total cumulative outflow to $50 billion. Add to this the $98 billion in withdrawals in 2010 and one can see why the mutual fund ponzi, which is already facing record low cash levels, is desperately relying on further stock appreciation as any additional capital withdrawals will result in a toxic downward spiral of selling. Because should the cash balance of about 3% of assets be used up, there will be no other way to satisfy redemption requests than with accelerated selling. In other news, taxable bond funds saw $67 million in withdrawals, a very rare outflow from fixed income, while muni funds saw $147 million in outflows.
Whatever you do on the chart below, do not notice the glaring head and shoulders formation: