Bank of America (BofA) is unveiling its outlook for the S&P 500 for the rest of the year as the stock market surges to new record highs. In a new CNBC interview, Paul Ciana – BofA’s head of fixed income, currency, commodity, and equity technical research – says he expects the S&P 500 to rally in the coming weeks after breaking out from a bullish reversal pattern. “Yes, the S&P 500 is getting a little bit overbought, and we’re seeing signs of tactical weakness. But that’s okay. We’re also seeing plenty of signs for a bullish trend. We think back to May, when we initiated our bullish outlook for this summer. We had that very nice [inverse] head and shoulders bottom in the daily chart of the S&P 500. That, like the technical textbooks would say, measures up to about 6,625. So we’ve been looking for a rally into the 6,500 this summer, maybe with a little upside risk to that.” Source: CNBC/YouTube While Ciana is bullish on the S&P 500, he warns that its ascent will not happen in a straight line. The BofA executive predicts that the stock market index will witness a correction once it hits his target level based on a technical analysis rule. “In technicals, we like to say that the rule of alternation occurs with corrections, and there are a lot of parallels between 2025 markets and macro with 2018. In 2018, we had that shallow correction in the first half, big rally to all-time highs and a deep correction at year-end. So I think the rule of alternation suggests we get this rally to new all-time highs, we have a mean reversion toward year-end. So maybe if we get up to 6,500, 6,600 toward year-end, maybe we come back down toward 6,200.” Ciana clarifies that the S&P 500 succumbed to a deep pullback earlier this year, and that a modest correction could occur in the coming months – an inverse scenario of what happened in 2018. As of Monday’s close, the S&P 500 is trading at 6,268. Follow us on X , Facebook and Telegram Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Bank of America Sees S&P 500 Showing Bullish Signals, But Warns a Modest Pullback Could Be Near – Here’s When appeared first on The Daily Hodl .