The market exodus has begun — but for true capitulation, watch for 'investors selling what they love,' says BofA

The strategists at Bank of America wrote in a note Thursday that the recent market plunge signals an investor exodus, but a true bottom hasn't been reached yet.

The collapse in speculative tech stocks now rivals declines seen during the dot-com bust and the global financial crisis according to a report by BofA. Weekly outflows were seen in stocks, bonds, gold and cash.

capitulation is an indicator of a market bottom that some traders use as a sign that a rebound will begin.

Are we there yet? BofA wrote that they do not think ultimate lows have been reached, nor ultimate highs in yields, but that current conditions haven't fully met their potential.

For now, capitulation has progressed much further in the credit market than in the stock market.

They argue that capitulation won't be apparent until the market sees investors selling what they love.

Apple is in the midst of a bear market and was a darling of the bull market.

BofA said that despite coming off its high, the stock has yet to break its moving average. On Thursday, Apple shares fell as low as $138 but rebounded to $147 on Friday.