Merill Lynch joins the Bear Camp …
Merrill Lynch said its sees continued pressure on the U.S. equity
market in the coming months as it sees the S&P 500 Index as
less than 50% priced in for a U.S. recession that it believes
likely began in January.
U.S. Sector Strategist Brian Belski said that given the
deteriorating fundamental and macroeconomic backdrop, he
doesn’t believe the stock market has hit a bottom, and
cautioned investors from being “fooled” by bear market rallies.
Belski said the March 10 low occurred just 2 1/2 months into the
current recession, according to Merrill’s North American Economist
David Rosenberg, but noted that the market has never bottomed
within the first three months of a recession.
“Despite soaring food and energy costs, continued troubles in the
financial sector and a hobbled consumer, equity prices have
remained relatively resilient,” Belski said in a research note.
“Given this backdrop and macroeconomic headwinds that are likely
to persist, we believe the market will continue to face pressure
in the months ahead.”
Welcome to the club 
…
I only hope, that it is not the signal for a bear rallye first 
Goldman today lowered financials and consumer disc. sector …
Tags: Merill Lynch, outlook, S&P
