Bank of America: Bull/Bear Index Rises to 8.5, Triggering 'Sell' Signal, Warning of Global Stock Market Adjustment Approaching According to a report by Golden Finance, on June 1st, as the speculative atmosphere in the market continues to rise, the Bank of America's bull and bear indicators have further climbed from 8.0 to 8.5, indicating a "sell signal". The Bank of America report warns that there have been 17 sell signals for this indicator since 2002, followed by an average global stock market decline of 2% to 3% in the following 2 to 3 months, with the maximum correction range reaching 15% to 20%. Bank of America pointed out that the surge in bull and bear indicators this time is mainly driven by strong capital inflows from high-yield bonds (HY) and emerging market bonds, coupled with Bank of America's global breadth rules indicating that the market has reached "overbought", with a net 57% of global stock indices trading above the 50 day and 200 day moving averages. Despite the S&P 500 index hitting new highs repeatedly, the market structure is extremely fragile. At present, only 21 stocks (about 4%) of the benchmark index have reached a new high, which is the same as the 20 stocks at the peak of the foam of SciDev. Net in March 2000. Meanwhile, 222 stocks in the benchmark index have fallen more than 20% from their highs, and 109 stocks have fallen more than 40%. Institutions and global funds have begun to withdraw. Last week, global stocks recorded a net outflow of $7 billion, marking the first time in 9 weeks. Among them, the Japanese stock market saw an outflow of $8.2 billion, the largest weekly outflow since May 2025. In the face of the market in the late foam, Bank of America has given a historical investment roadmap since 1929- buying long-term bonds (the median yield of 10-year treasury bond bonds will fall by 45 basis points within 6 months after the market peaked in history), and deployed defensive sectors, or showed extremely backward sectors at the end of the foam, while avoiding the assets hyped excessively in the early stage.