Michael Hartnett Warns of Imminent Stock Market Sell Signal – Coincu

Michael Hartnett, Chief Investment Strategist at Bank of America, warns that global stock markets are nearing a technical sell signal due to overheating after a rapid 20% surge.

This event is significant as national indices reaching Hartnett’s sell triggers, driven by substantial fund inflows, could lead to a pullback.

Global Markets Approach Hartnett’s Overbought Sell Signal

Global stock markets have surged by 20% in two months, prompting Michael Hartnett to issue a warning of a technical sell signal. Hartnett, known for his contrarian market calls, indicated that a continued rise in fund flows and market breadth data are precedent signals for market pullbacks.

The market’s current condition is overheated, with approximate 84% of national indices trading above their 50-day and 200-day moving averages. Hartnett identifies that if this number rises to 88%, it would trigger his formal sell signal, indicating an overbought market. Hartnett noted, “About 84% of national indices are above their 50-day and 200-day moving averages. When this indicator reaches 88%, that’s [my] sell trigger point.” This analysis remains crucial as traders view high fund flows as an indicator of exhausted buying power.

There have been no direct responses from major governmental or financial institutions regarding Hartnett’s warning. Market participants globally are preparing for potential volatility. No major crypto figures have commented on potential impacts on digital assets.

Crypto Markets Unmoved by Hartnett’s Stock Market Alerts

Did you know? Hartnett’s previous sell signals based on technical breadth have aligned with market corrections, suggesting similar risks for cryptocurrencies like Bitcoin.

According to CoinMarketCap, Bitcoin (BTC) is priced at $105,304.87, with a market cap of $2.09 trillion and dominance at 63.87%. The trading volume in the last 24 hours totals $62.11 billion, marking a 48.23% change. The coin’s price has seen a positive movement recently, including a 1.16% increase in the past day and a 34.86% rise over the last 60 days.

Coincu research indicates potential broader market impacts from Hartnett’s warnings, suggesting possible shifts in regulatory approaches or risk asset pricing. With global equities showing signs of overheating, experts highlight historic volatility correlations between stock market signals and digital currencies like Bitcoin and Ethereum.