Bank of America: S&P 500 index has limited upside potential in the short term

Golden Finance reported that the stock market's Reverse Indicator of Bank of America rose last month, reflecting the high sentiment on Wall Street. Given that the indicator is still in the 'neutral' zone rather than the 'buy' or 'sell' threshold, it means that the extreme pessimism towards the stock market last year helped the rise, but this momentum no longer exists. Savita Subramanian and others stated in a report to clients that in July, the so-called Seller's Indicator (SSI) pumped 30 basis points to 55.6%. The indicator tracks the recommended level of balanced mutual fund allocation to US stocks by strategists. The head of US stocks and quantitative strategies at the bank wrote that the indicator is at its highest level since the beginning of 2022, but still below the average level, 'indicating that the optimistic sentiment has not reached a dangerous level.' Subramanian stated that the short-term upside space for the S&P 500 index is limited, but there are still opportunities within the index to achieve good returns.