(Bloomberg) — The rally that has powered stocks in May struggled gain much traction on Tuesday, with investors split on whether the market can sustain the advance given all the economic crosscurrents.
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Equities are set for a consolidation amid stretched positioning, according to JPMorgan Chase & Co. strategists. Meantime, a pair of contrarian sentiment indicators from Bank of America Corp. and Citigroup Inc. are on the cusp of levels that say it’s time to snap up shares. And Goldman Sachs Group Inc. said Commodity Trading Advisors have lifted their stock exposure and are expected to keep buying regardless of the market direction this week.
Stocks have been trying to make a comeback after April’s rout, with gains fueled by prospects of Federal Reserve rate cuts and solid earnings. While the S&P 500 recently broke above a key technical level, Matt Maley at Miller Tabak + Co. says he’d like to see a bit more…
