Bank of America's stock market contrarian index rose last month, reflecting high Wall Street sentiment. Given that it is still in the "neutral" zone rather than the "buy" or "sell" tipping point, this means that the extreme pessimism about stocks that fueled the rally last year is no longer there. In a note to clients, Savita Subramanian and others said the so-called sell-side index (SSI), which tracks the average level of US equity allocation recommended by strategists for balanced allocation funds, rose 30 basis points to 55.6 per cent in July. The measure is the highest since early 2022 but remains below average, "indicating that optimism has not yet reached dangerous levels", the bank's head of US equity and quantitative strategy wrote. Subramanian said the S & P 500 has limited upside in the short term, but there are still opportunities for good returns within the index.