Strategists Warn 70% Bear Signposts Triggered, Nasdaq Bullish Bets Remain Stretched
BAC•Bank of America’s equity strategist reports 70% of its bear market signposts have triggered, with tech stock dispersion reaching +120%, the highest since 2000, and recommends profit-taking. Citigroup strategists highlight aggressive short-selling and extended Nasdaq bullish positioning ahead of the Fed’s June decision and major AI-related IPOs, skewing downside risks.
1. BoA’s Bear Market Signposts and Profit Recommendation
Bank of America’s head of U.S. equity and quantitative strategy has identified 70% of its bear market signposts as triggered, mirroring conditions seen before past S&P 500 peaks. The strategist noted extreme tech dispersion of +120% between top and bottom quintiles and urged investors to take profits in response.
2. Citigroup Cites Short-Selling and Extended Nasdaq Positioning
Citigroup strategists report aggressive short-selling in U.S. stocks alongside stretched bullish bets in the Nasdaq, leaving markets vulnerable to a corrective move. They warn that upcoming inflation data, the Fed’s June 17 rate decision and major AI-focused IPOs could spark meaningful long-liquidation events.
