S&P 500

Over the past 15 weeks we have documented one of the more curious indicators hinting that at least the "smart money" (hedge funds, institutions and private clients) have refused to jump on board the market rally as a result of what is now a record 15 consecutive weeks of selling into the market rally as per Bank of America client data.

Now, according to the same Bank of America, there is "Another sign that Wall St doesn’t believe the rally." This is what BofA equity and quant strategist Savita Subramanian has to say:

Following what was one of the most volatile Q1’s on record, Q2 kick started the second quarter on a positive note in April. According to DB (whose stock has failed to meaningfully rebound from recent lows) while performance didn’t quite match those lofty gains made in March, in the face of a number of key central bank meetings and also the commencement of earnings season in the US and Europe – for which expectations were low – risk assets in particular have shown a reasonable degree of resilience on the whole.

It has been a busy weekend for mostly negative newsflow.

Submitted by Lance Roberts via RealInvestmentAdvice.com,

Over the last couple of week’s, I have written extensively about the breakout of the market above the downtrend resistance line that traced back to the 2015 highs. To wit:

“With the breakout of the market yesterday, and given that ‘short-term buy signals’ are in place I began adding exposure back into portfolios. This is probably the most difficult ‘buy’ I can ever remember making.”

By Nick Colas of Convergex

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