Bank of America says prepare for a 'summer correction’ after rally to record highs

The bank says several technical indicators suggest the recent advance is becoming stretched, signaling a more defensive stance. The message shifts focus from chasing further gains to protecting existing profits. This is a cautious market-technical warning rather than a fundamental deterioration.

Analysis

The bank says several technical indicators suggest the recent advance is becoming stretched, signaling a more defensive stance. The message shifts focus from chasing further gains to protecting existing profits. This is a cautious market-technical warning rather than a fundamental deterioration.