Bank of America Warns No Trading Upside Until Oil and Dollar Weaken
Bank of America chief investment strategist Michael Hartnett warns that core signals for ending the current stock market correction are only partially in place, citing no weakening in safe-haven assets like oil and the U.S. dollar. Major indices fell 2.0% (S&P 500), 3.0% (Dow) and 1.2% (Nasdaq) last week.
1. Hartnett’s End-Correction Indicators
Bank of America’s chief investment strategist Michael Hartnett asserts that while some technical conditions for ending a market correction—such as breadth contraction—have occurred, essential catalysts remain absent, delaying any sustained rally.
2. Safe-Haven Assets Remain Firm
Historical patterns show corrections conclude when safe-haven assets like crude oil and the U.S. dollar weaken, but both remain robust, suggesting the reset phase is incomplete and upside remains limited.
3. Recent Index Movements
Over the past week, the S&P 500 fell 2.0%, the Dow lost 3.0% and the Nasdaq dropped 1.2%, while the S&P is down roughly 1.5% year to date.