S&P 500 Is a Touch Away From Triggering Sell Signal, BofA Says
The S&P 500’s rally to record highs has brought it within striking distance of a sell signal, according to Bank of America Corp.’s Michael Hartnett.
The strategist recommended investors start offloading shares once the benchmark rises above 6,300 points — just 0.3% above its Thursday close. He also reiterated that bubble risks were rising into the summer, with the House passing a $3.4 trillion fiscal package that cuts taxes.
“Overbought markets can stay overbought as greed is harder to conquer than fear,” Hartnett wrote in a note.
US stocks have soared back to all-time highs on signs that the US economy is staying resilient as President Donald Trump softened his approach on tariffs. That’s ignited some speculative fever in the market, with technology heavyweights back in vogue and the buzz around artificial intelligence returning.
Still, trade concerns remain center stage with Trump saying his administration would start sending out letters to trading partners on Friday setting unilateral tariff rates.
US stock futures fell Friday morning. Cash trading is closed for the Independence Day holiday.
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