⚠️The BofA Bull & Bear indicator is flashing its most extreme SELL SIGNAL in months:
The indicator rose to 8.5 this week, up +0.5 points from 8.0, pushing further into sell signal territory.
5 of the 6 components remain bullish or very bullish, with Global Fund Managers Positioning in the top 5% of all readings since 2002, the highest of any component, while none are bearish.
Historically, there have been 17 sell signals since 2002, with global stocks averaging a loss of -2% to -3% over the following 2 to 3 months, and maximum drawdowns of -15% to -20%.
Investor euphoria is signalling this is a time to be cautious.