---
title: "Bank of America Sends a Stark Warning on the S&P 500"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/289627351.md"
description: "Bank of America's Bull & Bear Indicator rose to 8.8, remaining in sell territory for the fourth week due to record tech fund inflows and soft equity breadth. Historically, such signals precede 2-3% global stock declines over two to three months, with drawdowns up to 20%. Despite investor optimism, BofA warns that elevated inflation and potential tighter monetary policy may continue to pressure risk assets."
datetime: "2026-06-12T17:42:20.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/289627351.md)
  - [en](https://longbridge.com/en/news/289627351.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/289627351.md)
---

# Bank of America Sends a Stark Warning on the S&P 500

Bank of America said its Bull & Bear Indicator climbed to 8.8 from 8.7 in the latest reading, keeping the gauge in sell territory for a fourth straight week as investor sentiment stayed elevated.

Bank of America said the move was supported by record inflows into technology funds, while outflows from high-yield and emerging-market bonds, along with softer global equity breadth, helped limit the increase. The bank said the indicator has flashed a sell signal 17 times since 2002.

Bank of America noted that past sell signals have been followed by average global stock declines of 2% to 3% over the next two to three months, with peak drawdowns reaching 15% to 20%. The current reading is being driven by bullish fund-manager positioning, bond flows, credit-market technicals and broader stock-market breadth, while hedge fund positioning and equity flows remain neutral.

Bank of America also said elevated inflation and the risk of tighter monetary policy could still pressure risk assets, even as investors remain increasingly optimistic.

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## Related News & Research

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- [M Holdings Securities Inc. Has $8.75 Million Position in Bank of America Corporation $BAC](https://longbridge.com/en/news/289449650.md)
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