BofA Lowers S&P 500 Year-End Target to 7,100 as 70% of Bear Market Signals Flash in June

According to Bank of America Global Research, strategist Savita Subramanian's team advised institutional and retail clients to book profits on June 9, citing that the S&P 500 rally has triggered 70 percent of historical signposts preceding major market peaks. The bank lowered its year-end S&P 500 target to 7,100 and escalated its internal risk warning system to match the threshold seen before prior cyclical corrections.

BofA's proprietary model tracks ten bear market indicators, with seven now flashing active caution signals as of early June, up from four in March and five in April. Out of 20 core valuation metrics tracked, 17 are showing statistically significant overvaluation. The strategist team cited extreme valuation metrics and unhealthy market concentration in technology sectors as primary risk drivers. High price-to-earnings stocks have outpaced low P/E value stocks by an unsustainable margin, while return dispersion within the S&P 500 has widened to levels last seen during the post-COVID market panic.