Merrill Lynch: Мarket could 'melt up' 10 percent, right before a meltdown

Stocks and commodities could see a final 10 percent melt-up in the first half of the year, followed by a "meltdown" closer to 2018, according to Bank of America Merrill Lynch strategists.

Stocks could continue to rally before fizzling out in the second half of the year, closer to 2018, Hartnett said. He said one sign that "something nasty" is about to happen, would be if both the dollar and gold moved higher at the same time.

That's a rare occurrence, said Hartnett. "You see that there's trouble ahead. The warning signs would be credit, bank stocks [sell off]. Right now, there's nothing more contrarian out there than gold. That's not to say you buy it today. At some point, gold is going to move higher. It's going to start to worry about inflation," he said. When the market sees the withdraw of liquidity by the Fed or other central banks, that's when gold would rise with the dollar.

There could be some choppy periods in the meantime. BofA's year-end target for the S&P 500 is 2,300. It was just 30 points below that Monday.

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