If anyone was curious why the Fear and Greed index is at 13 (up from 5) despite the biggest 2-day surge in the Dow Jones ever, the answer is very simple: nobody believes the "broken market "any more, as confirmed by the biggest weekly equity outflow on record. The full details courtesy of Bank of America: Record Equity Outflows: weekly flows show $29.5bn outflows from equity funds (largest outflows on record – data since 2002) Equities: $29.5bn outflows (largest on record in absolute terms) ($6bn ETF outflows and $24bn mutual fund outflows) Bonds: $11.7bn outflows (largest since Jun’13) Money-markets: $22bn inflows (8w inflows of $121bn = largest since Dec’13) Precious Metals: $1.1bn inflows (largest since Jan’15) The YTD verdict: equity inflows just $448MM YTD, compared to $97bn for bonds. Even commodities have a greater inflow compared to stocks, making one wonder who else is buying (we know it's not the smart money). Geographic Breakdown: EM: $10.5bn outflows (largest outflows since Jan’08!) US: $12.3bn outflows (largest in 16 weeks) Europe: $3.6bn outflows (largest outflows since Oct’14) (first outflows in 15 weeks) Japan: bucks trend with $3.3bn inflows (inflows in 25 out of past 27 weeks) Investor Capitulation: daily flows show massive $19bn redemptions from equity funds on Tuesday (8/25) = 2nd largest since 2007 (when daily EPFR data became available) Credit exodus: $4.2bn outflows from EM debt funds; $4.9bn outflows from HY bond funds; $3.8bn outflows from IG bond funds (largest combined outflows since Jun’13 “taper tantrum”) Fixed Income Flows: $4.9bn outflows from HY bond funds (largest outflows in 2015) $4.2bn outflows from EM debt funds (largest since Jun’13 “taper tantrum”) $3.8bn outflows from IG bond funds (largest since Jun’13 “taper tantrum”) $0.8bn outflows from bank loans (4 straight weeks) (largest outflows since Jan’15) $1.7bn inflows to govt/tsy funds (8 straight weeks) Bull & Bear Index: falls to extreme “fear” territory of 0.5 (scale of 0-10)…most bearish since Jan’12 (Chart 2)