Despite $40 Billion Inflow, Bank of America Highlights Caution in Stock Market

As the holiday and Santa Rally season draws near, one Wall Street bank is telling investors to curb their enthusiasm where stocks are concerned.

A contrarian “buy” signal for stocks has now expired, weeks after it was triggered, said a team at Bank of America led by strategist Michael Hartnett on Friday.

On Oct. 20, the strategists flagged that their Bull & Bear Indicator was in “extreme bearish” territory at 1.9 from a previous 2.2. A contrarian buy signal for riskier assets is triggered when the bank’s so-called Bull & Bear Indicator drops under 2.0.

Read More : Despite $40 Billion Inflow, Bank of America Highlights Caution in Stock Market