Bank of America Indicator Flashes Rare 'Extreme Bearish' Buy Signal for Stocks

Bank of America's Bull & Bear Indicator has hit "extreme bearish" territory, triggering a contrarian buy signal for stocks.

The buy signal comes amid record outflows from cash, bonds, and equity funds as investors flock to safety.

Historically after the buy signal, stocks have seen gains over the next 3 months - like 5.4% for US stocks.

Upside risks include oil over $100/barrel, 10-year Treasury yields over 5%.

Technical analyst sees signs of strength, noting Nov-Jan period averages 6% Nasdaq gain as funds window dress portfolios.