Global Breadth Rule Triggers Contrarian Buy Signal For Equities

The Global Breadth Rule has triggered a buy signal for global equity markets, according to Bank of America Merrill Lynch’s recent global strategy report.

Global Breadth Rule - Markets Now In Oversold Position

With 43 out of 45 markets now in ‘oversold’ position, Bank of America Merrill Lynch analysts feel BofAML Global Breadth Rule has triggered a contrarian buy signal for global equity markets.

Michael Hartnett and team feel global equity markets are oversold by breaching the 200 DMA and 50 DMA triggers.

According to the strategists, the BofAML Global Breadth Rule quantifies the extent to which global equity markets are overbought or oversold and whether any marginal sellers are waiting in the...