{"id":5015,"date":"2025-07-04T13:50:57","date_gmt":"2025-07-04T13:50:57","guid":{"rendered":"https:\/\/bitunikey.com\/news\/sp-500-rally-brings-it-closer-to-sell-signal-bofa\/"},"modified":"2025-07-04T13:50:58","modified_gmt":"2025-07-04T13:50:58","slug":"sp-500-rally-brings-it-closer-to-sell-signal-bofa","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/sp-500-rally-brings-it-closer-to-sell-signal-bofa\/","title":{"rendered":"S&P 500 rally brings it closer to sell signal: BoFA"},"content":{"rendered":"

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While global stocks are likely to continue higher despite fresh tariff concerns, Bank of America strategist Michael Hartnett has warned that moves above 6,300 for the S&P 500 could trigger a \u201csell signal.\u201d<\/p>\n

Bank of America strategists said<\/a> in a research report that investors have allocated significant funds into cash and bonds in recent days, even as stocks rallied to record highs.<\/p>\n

Both the Dow Jones Industrial Average and the Nasdaq Composite edged higher as markets welcomed the easing of Middle East tensions and positive sentiment driven by macroeconomic tailwinds.<\/p>\n

Fresh trade war risks<\/h2>\n

The S&P 500 has had a stunning past few weeks, with a notable stocks bounce in May seeing the benchmark index hit new record highs as it closed at 6,279.35 on Thursday. Major U.S. indices advanced on better-than-expected payrolls data before markets closed for the July 4 Independence Day holiday.<\/p>\n

Although upward momentum may persist into next week, analysts caution that a continued rally could place the S&P 500 on the edge of a sell signal.<\/p>\n

This outlook coincides with renewed concerns over trade policy, as President Donald Trump\u2019s recent tariff remarks have brought trade war risks back into focus. With the 90-day tariff pause nearing its end<\/a>, some investors are adopting a more cautious stance.<\/p>\n

Hartnett suggests that if the current optimism holds and the S&P 500 surpasses the 6,300 mark in the coming weeks, a period of selling could be imminent.<\/p>\n

As well as the extended rally, BoFA strategists say bubble risks are growing, particularly after Congress approved Trump\u2019s \u2018One Big Beautiful Bill\u2019 \u2013 a policy and tax bill featuring a $3.4 trillion package.\u00a0<\/p>\n

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S&P 500 near \u201cbubble or burst\u201d scenario<\/h2>\n

According to Bank of America researchers, the market is approaching a critical juncture they describe as a \u201cbubble or bust\u201d scenario. In their assessment, the likelihood of the S&P 500 rallying to 7,000 this summer outweighs the probability of a sharp decline to 5,000.<\/p>\n

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\u201cOverbought markets can stay overbought as greed is harder to conquer than fear,\u201d Hartnett wrote.<\/p>\n<\/blockquote>\n

The bank also reported that investors funneled more than $56 billion into money market funds last week, while bonds attracted over $20 billion in weekly inflows through July 2.<\/p>\n

Equities recorded net inflows of $2.2 billion, with gold attracting $1.4 billion and cryptocurrency funds drawing more than $1 billion. The surge into digital asset investment funds came as Bitcoin (BTC) briefly spiked above $110,000 before pulling back below the key psychological level.<\/p>\n

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While global stocks are likely to continue higher despite fresh tariff concerns, Bank of America strategist Michael Hartnett has warned that moves above 6,300 for the S&P 500 could trigger…<\/p>\n","protected":false},"author":1,"featured_media":4619,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/5015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=5015"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/5015\/revisions"}],"predecessor-version":[{"id":5016,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/5015\/revisions\/5016"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/4619"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=5015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=5015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=5015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}