BofA: “Our Sell Signal Was Triggered On Jan 30, S&P 2686 Is Next”

Friday, February 2, 2018
By Paul Martin

by Tyler Durden
ZeroHedge.com
Fri, 02/02/2018

Last Friday, when the S&P hit an all time high and inexplicably melted up in the last hour of trading in a burst of frenzied buying, we warned that according to Bank of America, “Biggest Sell Signal In 5 Years Was Just Triggered.” Incidentally, on that very day, the S&P 500 bull market became the second largest of all time last Friday, as the global equity market cap of $86.6TN rose $57.9TN from 2009 lows and $29.9TN from 2016 lows, according to BofA.

In retrospect, following what is shaping up as the worst week for stocks since 2016, Bank of America was right.

Now, in a follow up, Bank of America’s chief investment strategist Michael Hartnett confirms in his latest Flows Show that the bank’s indicator of market sentiment officially hit a “sell” signal on January 30, pointing to a downturn for risk assets.

Specifically, the bank’s “Bull & Bear” indicator of market sentiment jumped from 7.9 to 8.6 on Jan 30, driven up by record inflows to equities and strong hedge fund risk appetite.

Why is this relevant? Because as we noted last week, the indicator has accurately predicted 11 out of 11 corrections since 2002, with a 12% average decline over the next 3 months once triggered…

The Rest…HERE

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