BAML's Sell Side Indicator is on the rise but remains in "extreme bearish" territory, thus continuing a contrarian buy signal for stocks.
The latest read of 53.3% comes against the 15-year average of 60.3%. As long as it remains below 54.4%, the buy signal continues (it's spent about all of 2012 and 2013 there). As comparison, the indicator was in the same low-to-mid-50 area at the March 2009 bottom.
The index tracks back to 1985, and until the last couple of years, sell-side consensus spent very little time in extreme bearish territory. Now it seems to be the norm.
Index ETFs: SPY, QQQ, IVE, SH, DIA, IWM, TZA, TNA, SSO, SDS, PSQ, IVV, UWM, SPXU, UPRO, VOO, QID, VB, TQQQ, IJR, RSP, DOG, SLY, SQQQ, QLD, DXD, SKF, IWF, RWJ, RWL, EPS, IWD, URTY, TWM, SCHA, UDOW, SDOW, DDM, IVW, SPYG, RWM, SRTY, RPG, SPYV, RPV, BXUB, SAA, DWAS, VOOG, VTWO, QQEW, QQQE, TRND, VOOV, SDD, JKJ, RSCO, SBB, SFLA, BXUC, FBG, VIOO, FYX, UKF, XSLV, QQXT, FTA, EWRS, BXDB, VONG, UVG, TNDQ, VONV, TWOK, SMLV, PXSC, SJF, FIBG