BofA Says S&P 500 to Hit Fresh Lows If Volatility Pattern Holds
- Strategists measure from volatility peaks in sell-offs
- VIX isn’t pricing in chance of secondary market shock: BofA
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U.S. stocks are likely to see new lows if VIX patterns from yesteryear hold sway, according to Bank of America Corp.
The current bear-market rally most closely resembles what occurred in 2008, and suggests there’s limited further upside before a turn that drags the S&P 500 to fresh lows, strategists led by Benjamin Bowler wrote in a note Tuesday. They drew that conclusion by measuring from the peak of volatility in the three most recent major sell-offs and comparing those with the present one.