Investors are flooding out of cash to buy stocks. That 'bull capitulation' is a sell signal, Bank of America says

A contrarian signal just flashed and is warning traders that it could be time to get out of the stock market, or at least limit exposure. Investors are flooding out of cash to buy stocks, with collective cash levels dropping to 3.9% of portfolios, from 4.3%, according to a widely-followed survey of fund managers from Bank of America Securities. The firm considers a drop below 4.0% aggregate cash levels as a sell signal. …