Bank of America just flashed 7 out of 10 pre-top signals. Last time this happened? Right before a major drawdown.
Here's what's firing:
Sentiment is cooked. Valuations stretched. Credit markets cracking.
7/10 is the exact average seen before every bear market since 1990. And it's accelerating—jumped from 5 in April to 7 in May.
Two red flags stand out:
Tech dispersion is now at dot-com bubble levels. BofA literally said it "rivals the dot-com bubble." The gap between winning and losing tech names hasn't been this wide since Feb 2000.
Both credit signals are lit. High-yield stress + bank lending tightening. Credit always warns first.
BofA's call? Take profits. They set $SPX target for 2026 at 7,100—below current levels.
Credit doesn't lie. Watch the next few weeks closely.
Here's what's firing:
Sentiment is cooked. Valuations stretched. Credit markets cracking.
7/10 is the exact average seen before every bear market since 1990. And it's accelerating—jumped from 5 in April to 7 in May.
Two red flags stand out:
Tech dispersion is now at dot-com bubble levels. BofA literally said it "rivals the dot-com bubble." The gap between winning and losing tech names hasn't been this wide since Feb 2000.
Both credit signals are lit. High-yield stress + bank lending tightening. Credit always warns first.
BofA's call? Take profits. They set $SPX target for 2026 at 7,100—below current levels.
Credit doesn't lie. Watch the next few weeks closely.