Bank of America is telling clients to fade S&P 500 rally above 4550

Bank of America is telling clients to fade S&P 500 rally above 4550
Financial Expert Stock Markets 17 November 2023

Global stock funds have witnessed substantial inflows, attracting $23.5 billion in the week ending November 15, marking the second-largest inflow of the year, according to Bank of America's note referencing EPFR Global data.

Within this, money market funds received a significant influx of $20.5 billion, while bond funds saw an inflow of $2.6 billion.

Analysts at BofA urged the broker’s clients to start “fading” the S&P 500 above 4550.

The S&P 500 staged an “epic risk rally” recently, adding about 10% in a matter of days. The index closed at 4,508.24 on Thursday.

Bank of America's bull and bear indicator has signaled a contrarian "buy signal" for the fifth consecutive week. Historically, a median of 1-3% gains based on such signals over the past 20 years would imply the S&P 500 reaching 4,550 points, just under 1% above its latest close.

In terms of regional trends, U.S. stock funds have experienced a fifth consecutive week of inflows, totaling $25.8 billion, while Europe continues to witness outflows for the 36th consecutive week.

In the sector breakdown, technology leads in terms of inflows, while health care and utilities face the largest redemptions. Additionally, U.S. large-cap stocks have seen the most significant additions since February 2022.

Previous articles

This week in EVs: Price hikes and pay bumps

27 November 2023

Tesla TSLA increases Model Y price in China

Electric vehicle (EV) giant, Tesla Inc (NASDAQ:TSLA) announced Tuesday that it has increased the price of its Model Y Long Range Dual Motor All-W...

5 big analyst AI moves: AI demand to keep tech rally intact; C3 upgraded

27 November 2023

UBS says AI demand to fuel tech rally

Tech stocks are likely to continue rallying going forward, according to UBS investment strategists. More precisely, the Swiss investment bank sees chip...

Top 5 things to watch in markets in the week ahead 27.10.2023

27 November 2023

With investors on tenterhooks over when global interest rates might start to fall, upcoming inflation data this week will be in focus. OPEC+ meets to discuss oil output cuts and data from China wil...

U.S. futures inch mostly up ahead of shortened trading day - what's moving markets

25 November 2023

U.S. futures edged mainly into the green ahead of a truncated trading day. American shoppers will be on the hunt for deals this Black Friday as retail companies warn that inflation-squeezed consume...

Investors are clamoring for OpenAI, Microsoft stock amid Sam Altman drama

25 November 2023

The recent dramatic firing and re-hiring of OpenAI CEO Sam Altman has led to a massive increase in would-be investors in the AI software company behind ChatGPT. An analysis from Venture Smarter sho...