NEW YORK (ETF Expert) -- It may be too early to declare that the “do whatever it takes” rally is dead in the Mediterranean Sea. After all, there is still a fair amount of interest in buying broad market stock ETFs on weakness.
For example, on Wednesday, block trading institutional investors snatched up shares of the iShares S&P 100 (OEF) on 12 times the normal trading volume. The activity increased OEF’s net assets under management by an attention-grabbing 3%.
By the same token, there are equally intriguing contradictions. For instance, since Mario Draghi’s July 26th pledge to do anything and everything to get the eurozone through its debt crisis, the percentage of S&P 100 stocks above a long-term moving average had collectively remained above a 200-day trendline; that is, they were able to hang in there until Tuesday. In fact, with more selling taking place on Wednesday, one can expect the slide to be even more pronounced.
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