QQQ - S&P 3600 is the new bull case; sell rips and watch yen for a crash warning - BofA

Pessimism is pervasive across the equity market and traders are telling BofA Securities that a further 8% drop in the S&P 500 (SP500) (NYSEARCA:SPY) is a bullish scenario. "Heard on the Street: '3600 is the new bull case,'" strategist Michael Hartnett said in his weekly Flow Show note Friday. U.S. GDP was $24.4T in Q1 and the global equity market cap collapse since the Nov 2021 peak has been $23.4T. The "stock market basically dropped by 1 US economy in 6 months," Hartnett said. But equity flows are not at capitulation levels and his stance is still "sell-any-rips." Investors should also watch the yen (FXY) as pretty much every stock market crash in the last 40 years has seen "sharp, quick yen appreciation. Of the "19 US equity bear markets past 140 year (the) average price decline = 37.3% & average duration 289 days," he noted. IF that were to

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S&P 3,600 is the new bull case; sell rips and watch yen for a crash warning - BofA