BofA Strategists See Wall Street Rout Forcing Asset Sales
- NYSE Composite Index breaks multiple technical support levels
- BofA strategists stay tactically bearish until Fed intervenes
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Spiraling losses on Wall Street are now snowballing into forced asset liquidation, according to Bank of America Corp. strategists.
The NYSE Composite Index, which includes US stocks, depositary receipts and real estate investment trusts, has broken multiple technical support levels including its 200-week moving average, the 14,000 mark, as well as 2018 and 2020 highs. Now accumulated losses could be forcing funds to sell more assets to raise cash, accelerating the selloff, according to Bank of America.