After the recent new highs in the US stock market, Deutsche Bank has poured cold water on the market.

In its latest research report, Deutsche Bank pointed out that the S&P 500 needs to take a breather after its recent continuous rise.

On April 5th, Deutsche Bank's strategists suggested that the US stock market's momentum might pause, and the S&P 500 index fell 4.6% in the two weeks after their statement.

This time, Deutsche Bank strategists including Parag Thatte, explained the three main reasons for the recent possible correction in the US stock market: a sharp increase in stock positions, a large inflow of stock funds, and a buyback blackout period before the second quarter earnings report.

According to Deutsche Bank's data, both active and passive stock funds' positions have reached the top 5% range of historical data in the past 10 years, and stock funds have achieved continuous inflows for nine weeks, bringing risk appetite to the "limit".

Finally, Deutsche Bank's strategists estimated that starting from next weekend, companies that account for nearly half of the S&P 500 index's market cap will enter a buyback blackout period, which will prevent companies from buying back stocks to support stock prices in the short term.

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