A contrarian 'buy signal' for stocks has been triggered after waves of selling

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$7.6 billion in cash left equities in the week ending Wedneaday, which took the year-to-date outflow total to $204 billion.

Bank of America Merrill Lynch said in a research note Friday that its flagship sentiment indicator had tumbled from 2.4 to 1.3 and triggered a contrarian "buy signal" for risk assets.

The bank said this week's drop had been due to outflows in emerging market debt and equities, as well as a rapid rally in Treasury markets.A contrarian "buy signal" for risk assets, like equities, has been activated for the first time since January this year.

 

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A contrarian 'buy signal' for stocks has been triggered after waves of selling

That seems 5 days late! Way to step out on a limb there!

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