BofA Bull & Bear Index Decreases to Neutral Zone (3.6) After 9 Consecutive Days of Price Increase

After 9 consecutive rising sessions of the market, the BofA Bull & Bear Index – a measure of global sentiment – has decreased from 3.9 to 3.6, reaching the "Neutral" threshold.

STRONG BEAR SIGNAL:

- Hedge Fund (HF) positioning: 9% – "Extremely Bearish"

- Bond fund flow: 9% – "Extremely Bearish"

BULL SIGNAL:

- Credit market technicals: 78%

- Equity inflow: 71%

Neutral: Market breadth (51%)

Despite the recent strong market rally, caution from hedge funds and weak bond fund flows indicate short-term correction risks. However, equity and credit liquidity continue to support the upward momentum.

👉 Do you think this is a "buy the dip" opportunity or a signal for profit-taking?

Source: BofA Global Research, Bloomberg, EPFR zerohedge