Bank of America's proprietary "Bull & Bear Indicator" has been in "sell signal" territory since May 2026, with weekly readings in July between 9.5 and 9.6 (out of 10), the highest level since 2021, reflecting extreme positioning by hedge funds, fund managers, and equity flows. Additionally, the August Global Fund Manager Survey showed cash reserves falling to 3.5% of total assets, down from 3.6% in July, marking the sixth-lowest level since 1998. This violates Bank of America's 4.0% cash rule, indicating that institutions are fully deployed. Michael Hartnett, the bank's Chief Investment Strategist, noted that extreme bullish positioning suggests reducing risk exposure. Historically, after the indicator issued 17 sell signals, the MSCI World Index declined by an average of 2% to 3% within two to three months.