The Bank of America warned on June 5 that there are “too many red flags” waving over U.S. stocks and traders should take profits, CNBC reported.
The bank tracked 10 bear market signposts and saw seven signposts triggering in May, five in April, and four in March
Seven is the average number of signposts reached ahead of previous bear markets since 1990, Bank of America strategist Savita Subramanian wrote to clients. “We see opportunity in S&P 500 stocks, but not the overall cap-weighted index.” The latest signs to turn red are the spread between the best and worst performers in the S&P’s tech sector, the bank warned. The gap between the best and worst performing tech quintiles’ median stock is 120 percentage points, the highest since February 2000, which was the peak of the internet boom. Subramanian warned that the spread “rivals the dotcom bubble” and added it hit 130 points just before the market peak of March 24, 2000.
The S&P 500 is a stock market index that tracks the performance of 500 of the largest publicly traded companies in the U.S. and covers around 80% of the total U.S. stock market capitalization. The index hit the all-time high (ATH) of 7,620.90 points on June 2 and was at 7,339.16 points at press time. More News: S&P 500-tied crypto stocks in 2026 Coinbase Global (Nasdaq: COIN) is the leading crypto trading exchange in the U.S.