... in which chief investment strategist Michael Hartnett explained why he was convinced that a drop as much as 12% was imminent in the coming 3 months. He pointed to a proprietary bank indicator that - when triggered - had correctly predicted a drop that averaged 12% over the coming weeks. As a result, he said that his immediate target for the S&P was 2686.

With the S&P trading 100 points below his target just one week later, and 300 points below where it was just last Friday, we can now say that this indicator has been accurate on 12 out of 12 occasions.

However, if that was troubling, what Hartnett said today was even more concerning: in his latest Flow Show released on the same day as the record outflow from equity funds was revealed...