Bear territory: Avoid urge to flee — FT.com

Bear territory: Avoid urge to flee.  Some interesting research from the FT.com, but not, as they say because it shines light on technical analysis, which it does not, but because it illuminates the risk of overs-shooting:

"According to those fonts of wisdom the technical analysts, the FTSE 100 and Nikkei 225 indices both on Wednesday slipped into bear market territory, as defined by a 20 per cent fall from an earlier peak. To normal ears, this sounds like a sell signal."

This is consistent with the herding that Olivier Blanchard has been speaking about earlier in the week.