BofA’s Hartnett Warns Overbought Global Stocks Face Sell Signal

Global equities are flashing an overbought warning, with moving averages already at levels that historically mark a sell signal for risk assets, according to strategists at Bank of America Corp.

Some 89% of MSCI stock indexes traded above their 50-day and 200-day moving averages in the week ended Jan. 28, a team led by Michael Hartnett wrote in a note. That breached the 88% threshold that they view as a sell signal.