A reliable buy signal just flashed for the stock market as most investors expect a Goldilocks scenario for the economy

• A reliable buy signal just flashed in the stock market, according to Bank of America.
• Cash allocations among professional investors jumped above the 5% threshold that typically signals stock market gains.
• The buy signal comes as most investors continue to expect a Goldilocks economic scenario.

A reliable buy signal just flashed in the stock market, according to Bank of America's global fund manager survey.

The survey, which gauges the sentiment of professional investors on Wall Street, showed that cash allocations among respondents jumped above the 5% threshold. That triggers a contrarian buy signal for stocks, according to the bank, and it has historically preceded solid gains ahead.