According to Bank of America Corporation strategists, Wall Street's growing losses are now snowballing into forced asset liquidations. The NYSE composite index, which includes American stocks, depositary receipts and real estate investment trusts, has fallen below several technical support levels, including the 200-week moving average, the 14000-point mark, and the highs of 2018 and 2020. Bank of America Corporation said the accumulated losses could accelerate the sell-off by forcing funds to sell more assets to raise cash.

Strategists led by Michael Hartnett wrote in a note on Thursday that "the best barometer on Wall Street" is collapsing and will remain bearish until the panic sell-off forces the central bank to intervene.

Investors will face more pain as the S & P 500 fell for the first time since 2009 and the Nasdaq 100 index fell for the first time in 20 years. Us stocks have been plummeting because of fears that the Fed is tightening policy while dragging the economy into recession, dragging down corporate performance in the process.

"when central banks start to panic, the market stops panicking," Hartnett said.

He expects the S & P to fall to 3333, which could trigger a "policy panic" around the G20 meeting in November. He expects the stock market to rebound after that, but says the US market will not hit a "substantial low" until the first quarter of next year, when Xiaobai Maimai Inc's impact from the recession in the first quarter of next year will lead to the peak of hawkish positions on yields, the dollar and the Fed.

Bank of America Corporation strategists point out that to "take a bite" at the S & P 3300 level-down about 9% from the recent closing price; to "bite" at 3600 and then "gobble it down" at 3000. Mr Hartnett and his team add that a 20 per cent decline below the 200-day moving average over the past century is a good buying point for a return to the stock market.