Bank of America spots too many red flags piling up across this overheated market, JPMorgan traders join the panic with calls for an imminent pullback

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Big banks scream take profits right as the highs feel unbreakable

BofA Warns It’s Time to ‘Take Profits’ as Red Flags Multiply

(Bloomberg) — Investors should exercise caution regarding US stocks as an increasing number of “bear market signposts” point to an approaching top, according to Bank of America Securities.

There are “too many red flags,” strategists led by Savita Subramanian wrote in a note dated June 5. “Take profits,” they advise.

Some 70% of those bear-market signals have recently been triggered, in line with the average observed during prior market peaks, the strategists said. The benchmark S&P 500 Index was “statistically expensive on 17 of 20 metrics, and trades rich versus its tech bubble metrics on eight,” Subramanian said.