Bank of America Corporation (BAC) Stock Forecasts

Summary

The good news from Tuesday is that the S&P 500 (SPX) closed 121 points, or 2.4%, above Monday’s intraday panic low. The bad news is the SPX gave back 72 points, or 1.4%, from its intraday high on Tuesday. So is the glass half empty or half full? The major and minor stock indices all gained around 1% Tuesday, as some calm has been restored — at least for now. The Volatility Index (VIX) plummeted from 66% Monday morning to a close on Tuesday at 28%. After soaring above its upper daily Bollinger Band (BB), the VIX closed back inside the upper band. A lower VIX close today would be a SPX buy signal and a VIX sell signal. The SPX missed closing back above its lower BB Tuesday, so we must wait another day if that signal is to turn bullish. The Nasdaq 100 (QQQ) did close back inside its lower band on a minor basis, a potential positive. NYSE breadth was pretty good at +1,551, while NYSE advances/total issues and advancing volume/total volume were both near 73%. That marked the first day with decent breadth since July 26, or seven trade days ago. Bonds went nuts during the stock rout, with the four-day rate-of-change on TLT (ending 8/5) at 5.63%, the highest level since January 2023 (and before that during the pandemic). There