Might want to temper your enthusiasm in the wake of the market's sharp rebound off Tuesday's historic beating. 

According to Bank of America Merrill Lynch strategists, 68% of the indicators they use to predict a looming bear market have been triggered. Some of the notable culprits: a Federal Reserve that is raising interest rates, a stock market that has pulled back 5% within the last twelve months and a rise in the VIX volatility index over the past three months. 

For the optimistic investor bunch, BofA does offer two inspirational tidbits.

First, historically 80% of the indicators they track have had to be triggered as to suggest a market peak. And secondarily, prolonged stock market plunges are not the norm.

"10% corrections have occurred one time per year on average, most recently in the first quarter of 2016, and 15% pullbacks have occurred once every two years (most recently in Aug. 2011)," points out equities strategists at Bank of America Merrill Lynch.

Source: Bank of America Merrill Lynch
Source: Bank of America Merrill Lynch

You investing wisely right now? Let TheStreet's top experts help you out. 

More from Opinion

Flashback Friday: Johnson & Johnson Hits Take Historic Plunge

Flashback Friday: Johnson & Johnson Hits Take Historic Plunge

Adobe's Decline After Earnings Reflects a More Risk-Averse Market

Adobe's Decline After Earnings Reflects a More Risk-Averse Market

Throwback Thursday: GE, GM Head in Opposite Directions

Throwback Thursday: GE, GM Head in Opposite Directions

Tech Reviews Aren't Always a Good Predictor of Demand (See: Apple's iPhone XR)

Tech Reviews Aren't Always a Good Predictor of Demand (See: Apple's iPhone XR)

Wednesday Wrap-Up: Roku Rebounds, Tesla Ships

Wednesday Wrap-Up: Roku Rebounds, Tesla Ships