BofA’s Hartnett Says Stock Rally Is Moving Closer to Sell Signal
- Rising global equity breadth to be a contrarian sell indicator
- All major asset classes record inflows in latest week: BofA
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The rally in global equity markets is at risk of overheating, according to Bank of America Corp. strategist Michael Hartnett.
The bank’s so-called global breadth rule shows that about 71% of equity indexes are trading above both their 50- and 200-day moving averages. A reading above 88% would trigger a contrarian sell signal, Hartnett wrote in a note. The strategist has taken a more neutral tone on stocks this year. He was broadly bearish in 2023, even as the S&P 500 rallied 24%.