Wells Fargo Triggers Sell Signal Since 2021 as S&P 500 Hits 7,259 Amid Rally Fade

Wells Fargo strategists flash the first contrarian sell signal since November 2021 on the S&P 500 at 7,259, warning the 'sugar high' rally may end with just 1.4% upside to their 7,300 midyear target and historical 2% declines ahead. The narrative evolved from Jamie Dimon's March 3 'skunk' alert on 3% inflation/geopolitics and 0.86% credit spreads implying 13% downside, through bearish BofA surveys, Barclays' neutral shift, and Goldman's froth/AI overhang past 7,100. May resilience shone via 16% earnings growth and 7,600-7,750 targets from Goldman/RBC/MS, tempered by oil surges and sticky inflation risks.