Bank Of America Predicts 'Sharp Pullback' In S&P 500

According to Bank of America analyst Michael Hartnett, traders should be long cash and volatility and expecting a sharp pullback in the S&P 500.
 

He urges traders to sit on the sidelines in the short-term until one of the following conditions is met: PMIs back above 50 in the U.S. and China, risk in emerges in the Remninbi and oil inducing buyers of high-yield and emerging market debt, or volatility causes the Federal Reserve to postpose its tightening.
 

Related Link: Gross: Everyone Will Need Xanax Over Next Few Decades
 

Bank of America is bullish on the U.S. dollar, the Eurozone, Japan and investment grade bonds. Traders should consider the PowerShares DB US Dollar Index Bullish UUP, the iShares MSCI EMU Index (ETF) EZU, iShares MSCI Japan ETF EWJ and iShares IBoxx $ Invest Grade Corp Bd Fd LQD.

Disclosure: the author holds no position in the stocks mentioned.