Bank of America: The Bull-Bear indicator climbs to 9.6 in the extreme range—suggests retreat or rotating positions

Deep Tide TechFlow news. On July 20, according to a July 17 fund flow report from Bank of America Securities, the Bank of America bull-bear indicator rose from 9.4 to 9.6, further delving deeper into the extreme bullish zone; historically, when the indicator exceeds 8.0, it is a sell signal. Semiconductor ETFs have seen inflows of $46 billion year-to-date, accounting for 31% of AUM. Over the past three weeks, technology fund inflows totaled $48 billion, setting a record. However, the Philadelphia Semiconductor Index is down about 20% from its June peak, showing a clear divergence between flows and price.

Bank of America believes the market has entered a “topping” range and recommends reducing stock exposure, pulling back or rotating into duration-sensitive, defensive sectors, high-dividend equities, and the US dollar. The report also notes that investor extreme optimism is built on three fragile assumptions: that the economy will not “soft land,” that the Fed will not raise rates, and that mega-cap companies will not cut AI capital expenditures—any of which could be broken. Bank of America provides specific observation anchors: retreat if the Technology Seven Giants index (MAGS) falls below 65, and it is a signal to re-enter only if it breaks above 70.