Markets are getting closer to a buying opportunity as investors capitulate, says Bank of America strategist

Oil needs to be convincingly back below $100/barrel before markets can rally concertedly; that $100 threshold is the key market hinge. Pressure on Trump to deescalate in the Middle East is building, and until sustained easing brings oil under $100, expect broad market rallies to remain constrained and risk-off positioning to persist.

Analysis

Oil needs to be convincingly back below $100/barrel before markets can rally concertedly; that $100 threshold is the key market hinge. Pressure on Trump to deescalate in the Middle East is building, and until sustained easing brings oil under $100, expect broad market rallies to remain constrained and risk-off positioning to persist.