Bank of America market gauge flashes first buy signal since Brexit

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The stock market has tumbled since October when trade battles intensified and recession fears crept in. It ended 2018 with the S&P 500 losing 6 percent, wiping out all the gains earlier in the year. In January 2018, the same indicator sent a strong sell signal when investors poured record cash into equities funds, indicating the market may be overheating.

The Bull & Bear indicator has proven its accuracy when it hits the “extreme bear” level — with the previous 15 buy signals since 2000, global stocks turned out to return 6.1 percent on average three months later, Hartnett pointed out.

To be sure, Hartnett said this may bot be the “big low” for the markets over the long term, but for now it’s due for a bounce.

Stocks rocketed higher on Friday after a better-than-expected jobs report and rebound in tech shares like Apple, which were hit hard on Thursday because of the iPhone maker’s reduced forecast.



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