"Is The Bottom In?" - BofA Answers The Question Everyone Is Asking | Zero Hedge: "On Wednesday, as the Dow Jones plunged by over 550 points and the S&P dropped by 15% from its all time highs seen last summer, many speculated - most notably Tom DeMark - that the relentless selloff had finally hit an "interim low", and was due for a rebound as much as 8%. Events since then have so far validated this forecast.
However the one question on everyone's lips, is whether aside from a "interim low", was Wednesday's flush the market's lows for the foreseeable future, and certainly for the first quarter.
Bank of America responds.
According to its strategist Michael Hartnett, while the January lows may indeed be in for the following reasons...
Breadth Rule in "buy" territory (95% of mkts <200 & 50dma); FMS cash jumped to 5.4% in Jan (3rd highest since 2009); uber-crowded trades of long peripheral Euro-area debt, long Euro-area banks, long NKY, long FANG (FB, AMZN, NFLX, GOOG) spanked; capitulation in “Illiquid” yield plays (EMB, HY, MLPs); massive outperformance (6.8% YTD) of “long duration, short risk” CTA’s (Chart 2).
....the Q1 lows are not in"
'via Blog this'
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