"Defense signal" is on! Bank of America warns that U.S. stocks will "squat deeply" in summer: S&P 500 may fall below 7000 points, with hopes of rebounding by the end of the year.

Chinatax Finance APP learned that Paul Ciana, the technical strategist at Bank of America, warned that after a strong rally in the first half of 2026, the U.S. stock market may experience a pullback in the third quarter. Although the bank still believes that U.S. stocks are expected to strengthen by the end of the year, its technical indicators suggest that investors should prepare for increased market volatility, implement risk control strategies, and expect a more challenging stock market environment in the summer.