Bank of America's reverse indicator rose to 55.1%. Market sentiment is heating up but is still neutral

The Zhitong Finance App learned that Bank of America Securities's “Sell-Side Indicator SSI” (Sell-Side Indicator SSI) rose 56 basis points to 55.1% in May. This indicator is an inverse measure of Wall Street's bullishness.

The Bank of America added that the indicator is stable in a neutral range, which is less predictable compared to more extreme buying or selling thresholds.

Seller indicators are back above the 15-year average and are closer to a reverse sell signal rather than a buy signal.

Analysts led by Victoria Roloff said in a report: “As the downgrade of trade relations between China and the US and optimism about the “Beautiful Act” drove the S&P 500 index to rise more than 6% last month, the best monthly performance since November 2023, strategists have increased their share allocation.”

Bank of America said that while market popularity is rising, the focus is also shifting from rising trade uncertainty to the potential benefits brought by the Big Beautiful Act.