Bank of America Issues S&P 500 Bear Warning as 70% of Pre-Bear Signals Triggered

According to MarketWatch, Bank of America's Global Research team warned this year that the S&P 500 has triggered approximately 70% of pre-bear market indicators, signaling that the market's outsized reliance on megacap technology stocks may be nearing an end. Led by strategist Savita Subramanian, the BofA team recommended shifting from index investing to individual stock selection, citing excessive speculation in high-valuation equities.

The internal divergence within the S&P 500 has reached extreme levels. Technology stocks showed the sharpest dispersion in three months, with the performance gap between the best and worst-performing 20% of tech stocks reaching its highest level since February 2000, according to the team's analysis.