Last week Bank of America Merrill Lynch (BofAML) released a research note that its “Bull & Bear” indicator was sending a sell signal “which has been accurate 11 straight times” since the firm started tracking it in 2002. The latest event to trigger the signal was the $33.2 billion that investors poured into stock-based funds the week before. While normally inflows are healthy for the market, they can be seen as a contrary indicator when they reach extremes of excess. The current reading on the indicator of 8.6 is firmly above the level of 8 established by BofAML as the “Sell” point.
Bull & Bear Indicator
| February 05, 2018