Sell Side Indicator: Stable optimism from Wall Street

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Sell Side Indicator: Stable optimism from Wall Street

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Sell Side Indicator

Stable optimism from Wall Street

Steady equity allocations, shifting leadership 30 June 2026

The Sell Side Indicator (SSI) is a contrarian sentiment signal that tracks sell side Equity Strategy

strategists’ average recommended allocation to equities in a balanced fund. The United States

indicator was unchanged at 56.2% in June after rising in May, remaining at its highest

level since February 2025. Strategists held equity allocations steady as the S&P 500 fell

1%, weighed down by mega cap Tech (average Magnificent 7 stock -9%). The average

S&P 500 stock fared better (SPW +2%), and 66% of index constituents ending the

month ahead of the cap-weighted index (99th percentile month since 1986).

Victoria Roloff“Neutral” with a skew toward “Sell” Equity & Quant Strategist

The SSI has been a reliable contrarian indicator – it has been bullish when Wall Street BofAS

was extremely bearish and vice versa. The indicator remains “Neutral” but is almost 4x +1victoria.roloff@bofa.com646 743 6339

closer to a "Sell" signal than a "Buy" (1.3ppt vs. 4.9ppt). Historically, when the SSI has Savita Subramanian

been here or higher, next 12-month S&P 500 returns were negative 32% of the time vs. Equity & Quant Strategist

18% overall since 1985. The current reading of 56.2% is below levels reached in recent BofAS+1 646 855 3878

market peaks (typically over 59%) and implies a 12% price return over the next 12 savita.subramanian@bofa.com

months. This is one of our five year-end target models, and is now the most bullish.

Sentiment isn’t euphoric, but caution is still warranted

Although sentiment does not signal euphoria, we see other reasons for caution on the Disclaimer: The BofA Sell Side Indicator is