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This rule with a perfect record says the market hasn’t bottomed, says Bank of America’s star analyst

·2 min read
This rule with a perfect record says the market hasn’t bottomed, says Bank of America’s star analyst

Investors therefore may like to consider the latest note from Bank of America’s Savita Subramanian in which the star analyst describes how “one rule with a perfect track record says the market hasn’t bottomed.” Subramanian, head of U.S. equity and quantitative strategy, says that only 30% of the conditions required for a market bottom are currently triggered following this latest rebound that has taken the S&P 500 (SPX) up 16.6% from its mid-June low. One of these signposts in particular is essential — the Rule of 20.