Even as United States blue chip stocks hit a record high on Tuesday, a Bank of America Merrill Lynch analyst cautioned that a sell-signal might be forming that might spoil the party, if only briefly, Reuters reported.
Mary Ann Bartels, a technical research analyst at the bank, said in her weekly Hedge Fund Monitor note that lower cash levels in margin accounts could suggest a sell-off lies ahead.
But Bartels and her team of analysts, who track how many of the world’s most powerful hedge funds are positioning themselves, said any future decline could just be a short-term correction in a market that has become a little too excited.
The bank’s research note was released on the same day the Dow Jones industrial average steamed to a record high, topping the record close of 14,164.53 set in October 2007.