Earnings news from Intel (NASDAQ:INTC) stopped bulls in their tracks as did continuing pessimism from the eurozone where credibility is challenged. Intel's warning continued a string of warnings from a variety of companies who see soft times ahead. I'd like to be more bullish, but there isn't much to be enthusiastic about. Sure, the Fed will meet Tuesday and may unleash QE3, or a variation of it, which will flood markets with liquidity. This will buy time and that's about it since the troubles facing the U.S. and Europe have no quick fix.
Retail investors continue to exit markets as noted by Deutsche Bank as follows: "Investors fled from equities (November) with outflows of $6.8bn from long-only ETPs; while pouring $4.9bn and $3.1bn into fixed income."