Bank of America says buy this dip ahead of a summer market rally

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Bank of America's Stephen Suttmeier forecasts headwinds for the S&P 500 in May before a summer rally.

Investors shouldn't get too scared by the recent market pullback, according to Bank of America. The firm believes the recent downside movement is a promising entry point before the market swings back to the green this summer. April marks the worst month for the S & P 500 since September 2023 as investors' expectations for rate cuts fell on hot economic data. The broad market index is down 2.8% for the month and at one point fell as low as 4,953 from the 5,200 level.

According to strategist Stephen Suttmeier, this is indicative of "presidential election year seasonality," during which the S & P 500 experiences a headwind in April and May. .SPX YTD mountain S & P 500 in 2024 "While the correction may not be over yet, the overall chart structure remains constructive, and seasonality supports buying a dip prior to a summer rally," Suttmeier wrote in a Monday note. The S & P 500 has tested its 5,000 support level, Suttmeier added.

 

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