BofA's Hartnett: Contrarian Investors Await Two Key Signals, Ready to Shift to Risk-Off Mode

Hartnett warned that a potential compromise in the US-Iran conflict and the upcoming US midterm elections will serve as core signals triggering a potential market shift: any sudden geopolitical de-escalation or an unexpected change in political power during the US midterms could swiftly break the fragile consensus currently underpinning the leaderless rally in risk assets. Until these two signals are triggered, he believes the market will continue its "grinding higher" pattern without a leading sector.