Record-Low Sentiment and BofA Sell Signal Pressure S&P 500

On May 22 the University of Michigan consumer sentiment index plunged to a 75-year low of 44.2 while Bank of America’s Bull & Bear Indicator hit 8.0, flashing a contrarian sell signal. The warnings cap a three-day deterioration that began May 20 when Schwab reported retail clients turning sharply bearish (28% bullish, 58% bearish) and continued May 21 with the flash S&P Composite PMI confirming only modest expansion at 51.7. Heavy bond inflows, institutional rotation into defensives, and persistent inflation concerns now leave the S&P 500 in a cautious posture despite resilient spending forecasts from Argus.