Fund managers hold most cash since 9/11, most underweight tech in 15 years

Money managers are extremely bearish but still not quite at the level of "full capitulation," according to the latest BofA survey out Tuesday. The May Global Fund Manager Survey showed cash levels jumping to 6.1%, a 20 year high and up from 5.5% in April. But the missing piece for full market capitulation is that those surveyed still expect rate hikes not rate cuts, which means "stocks (are) prone to an imminent bear rally, but ultimate lows (have) not been reached yet," strategist Michael Hartnett wrote in the note. Among the 331 panelists with $986B in assets under management, 78% expect higher short term rates and expect 7.9 rate hikes this cycle, up from 7.4. The Fed put is expected to come into play at S&P 500 (SP500) (NYSEARCA:SPY) 3,529. That's down from 3,637. Tech short:Fund managers also flipped to "extremely bearish" after 14 year of being overweight tech (XLK).