One of BofA's "Imminent Market Crash" Indicators Was Just Triggered

"Early last month, we showed that one of Bank of America's "guaranteed bear market" indicators, namely the three-month earnings estimate revision ratio (ERR) which since 1988 has had a 100% hit rate of predicting upcoming bear markets, was just triggered. As Bank of America explained at the time, "since 1986, a bear market has followed each time that the ERR rule has been triggered."

The only weakness of that particular signal is that while a bear market has always followed, the timing was unclear and the bear could arrive as late as two years after its was triggered.

Well, fast forward to today when overnight another proprietary "guaranteed bear market" indicator created by the Bank of America quants was just triggered.

As we explained earlier today, as part of the unprecedented, historic rush to dump cash and buy any risk assets that one can find, BofA's "Bull & Bear indicator" surged to 7.9 - effectively 8 - a level that is indicative of broad market euphoria, and the highest it has been since March of 2013, or nearly 5 years ago..."

at https://www.zerohedge.com/news/2018-01-26/one-bofas-imminent-market-crash-indicators-was-just-triggered