Bank of America is suffering from a case of he said, she said.Head of US Equity Strategy David Bianco raised eyebrows when he raised his 12-month target on the S&P 500 to 1450 from 1400. He also drew a ton of criticism.
Bianco is a fundamentals guy.
BofA’s Head of Technical and Market Analysis Mary Ann Bartels isn’t so optimistic.
“Unfortunately, nothing in our work suggests that the market is improving,” said Bartels in the first line of her note.
It gets worse.
“More importantly, we are more concerned now that the downside risk could be more than we originally forecast. Measured moves suggest 985-910 on the S&P 500 is a potential range where a market bottom may finally be found.”
Bartels pegs the probability of this dive at 50%.
She adds, “We expect several more months of volatility and once a bottom is made it will take months to build a base to repair the equity market – this could carry over into 2012.”
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