Bank of America analyst flags red alerts in S&P 500, urges profit‑taking

Bank of America Securities analyst Savita Subramanian said a recent study shows about 70 % of bear‑market indicators have already been triggered for the S&P 500. The index has risen roughly 1,000 points in under three months, reaching a fresh record of 7,619, driven by strong corporate earnings and a continuing AI boom.

Subramanian warned that the market is historically expensive on 17 of 20 valuation measures and drew parallels to the late‑1990s technology bubble. She noted that the rally is uneven, with a handful of large technology firms lifting the index while many other stocks lag behind. Credit demand is also easing, according to the Fed’s Senior Loan Officer Opinion Survey.

The analyst recommended that investors lock in gains, stating “Too many red flags” and advising at least partial profit‑taking, though she does not expect an immediate crash.