economy

January 9, 2026

Bank of America says extreme sentiment indicators 'all scream sell'

Michael Hartnett, Bank of America's chief investment strategist, pointed to a cluster of extreme positioning indicators.

Bank of America says extreme sentiment indicators 'all scream sell'

TL;DR

  • Wall Street sentiment gauges are flashing red, indicating 'sell' territory.
  • BofA's Bull & Bear Indicator is at 8.9, and fund manager cash levels are at 3.3%.
  • Record investments flowed into investment-grade credit, equity ETFs, gold, and cryptocurrencies.
  • Consensus forecasts predict 14% profit growth for the S&P 500.
  • The Federal Reserve is cutting interest rates and resuming quantitative easing.
  • President Trump's policies are injecting stimulus into housing and credit markets.
  • Easy financial conditions and reflationary policy signals support the market despite overheated sentiment.

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