Bank of America: Global stock markets close to triggering sell signals

BlockBeats News: On June 7th, Michael Hartnett, a strategist at Bank of America, warned that global stock markets are about to trigger a technical "sell" signal after hitting a historic high this week. He said that after soaring by 20% in just two months, the market is currently running too hot. He cited data on capital flow and market breadth as evidence of investors flocking to risky assets and holding excessively high positions. Traders often use this as a bearish signal because theoretically it can indicate that market purchasing power may soon be depleted and prices can easily rebound. The data cited by Hartnett shows that in the past four weeks, funds flowing into stocks and high-yield bonds accounted for 0.9% of total assets. He said that if this number rises above 1%, it will be a sign of investors selling. At the same time, the market is approaching the 'overbought zone'. About 84% of countries have indices above their 50 day and 200 day moving averages. He stated that when the indicator reaches 88%, his selling trigger point is reached. (Golden Ten)