Quote from JSSPMK:
Cnbc
Perhaps the past week's stock market rally was only a mirage: Fund-flow data showed retail investors ran for the exits even as the major averages were gaining nearly 4 percent and staging their biggest surge in months.
Equity investors pulled nearly $12 billion out of mutual funds for the week ending July 7, nearly matching the entire month of May, when the Standard & Poor's 500 [ .SPX1077.96 +7.71 (+0.72%) ] fell 8.5 percent and dropped into correction territory off the April 23 high.
Though some mutual funds reflect institutional investor holdings, they are considered a strong barometer of retail investor behavior.
So with $11.6 billion leaving the market in one week, investment pros are suspect about the quality of the rally.
"This looks like a short-covering rally," says David Twibell, president of wealth management for Colorado Capital Bank in Denver. "You have a big up day, decent follow-through, but not much volume, not much conviction, and it's hard to find a catalyst for any of it."
