Core Viewpoint - Michael Hartnett, a strategist at Bank of America, warns that the global stock market is about to trigger a technical "sell" signal after reaching a historic high this week, indicating that the market is overheating following a 20% surge in just two months [1] Market Conditions - The market has seen a significant increase of 20% in a short period, suggesting a potential overextension [1] - Hartnett cites data on capital flows and market breadth as evidence of investors flocking to risk assets, leading to high positions [1] Investor Sentiment - The current high levels of investor positions are often interpreted as a bearish signal, indicating that buying power may soon be exhausted [1] - The potential for a price correction is heightened due to the rapid increase in market activity [1]

Group 1 - Global stock markets are approaching a technical "sell" signal after reaching historical highs, with a warning from Bank of America strategist Michael Hartnett about the risk of a market collapse due to excessive investor enthusiasm [1][2] - Approximately 84% of national stock indices are above their 50-day and 200-day moving averages, with a threshold of 88% triggering preset sell conditions [2] - Year-to-date, global equity funds have attracted around $515 billion in inflows, potentially marking the second-highest record in history, while cash funds saw an influx of $94.8 billion in the past week, indicating a shift towards safer assets [2]