{"id":199578,"date":"2025-10-03T13:49:12","date_gmt":"2025-10-03T13:49:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/199578\/"},"modified":"2025-10-03T13:49:12","modified_gmt":"2025-10-03T13:49:12","slug":"a-trading-rule-measuring-stock-flows-is-about-to-trigger-a-sell-signal","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/199578\/","title":{"rendered":"A trading rule measuring stock flows is about to trigger a sell signal"},"content":{"rendered":"<p>Things may be getting dicey for the stock market. Bank of America chief investment strategist Michael Hartnett pointed out that inflows into global equities and high-yield bonds over the past four weeks make up 0.9% of assets under management for the company&#8217;s clients. That&#8217;s dangerously close to triggering a contrarian sell signal. &#8220;When inflows to global equities &amp; high yield bonds &gt; 1.0% of AUM in 4 weeks \u2026 sell,&#8221; he said in his weekly Flow Show note to clients. He noted that the signal will flash &#8220;if global equity fund inflows &gt; $20bn and HY bond inflows &gt; $1.5bn next week.&#8221; The major averages have had a record-setting week. The S &amp; P 500 this week topped 6,700 for the first time. The Nasdaq Composite is 0.7% away from reaching 23,000 through Thursday&#8217;s close. The Dow Jones Industrial Average set an all-time closing high of 46,519.72. .SPX YTD mountain SPX year to date That said, with investors piling into risky assets such as stocks and high-yield bonds, it may be a sign that equities are due for a pullback. On top of that, another potential sell signal is close to being flashed. The S &amp; P 500&#8217;s relative strength index is sitting at 69 as of Thursday&#8217;s close. When an asset or index reaches an RSI of 70 or greater, it enters oversold territory, signaling investors it may be due for a pullback. To be sure, investors and traders still see reasons to stay long equities. &#8220;The market from a valuation standpoint is expensive, but the market has double-digit earnings growth, free cash flow growth of mid teens \u2026 companies are buying back a ton of stock, you have margin expansion,&#8221; said Thorne Perkin, president of Papamarkou Wellner Perkin. &#8220;I think you&#8217;re going to see the market tick up into the end of the year.&#8221; Gregory Faranello, head of U.S. rates strategy at AmeriVet Securities, also pointed out that volatility across asset classes has &#8220;come down a lot&#8221; from the beginning of the year, &#8220;which is constructive for equities.&#8221; &#8220;But with markets at these levels, you do start to get a little nervous,&#8221; he said. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )<\/p>\n","protected":false},"excerpt":{"rendered":"Things may be getting dicey for the stock market. Bank of America chief investment strategist Michael Hartnett pointed&hellip;\n","protected":false},"author":2,"featured_media":176392,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[28,122,120,113,112,121,117,114],"class_list":["post-199578","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-business-news","tag-dow-jones-industrial-average","tag-investment-strategy","tag-markets","tag-nasdaq-composite","tag-sp-500-index","tag-stock-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/199578","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=199578"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/199578\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/176392"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=199578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=199578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=199578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}