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This bank thinks the S&P could fall 15% this summer

Bank of America Merrill Lynch equity analysts are among the most bearish on Wall Street, and they say the S&P 500 could retest its February lows this summer — about 15 percent below current levels.

Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America Merrill Lynch Global Research, said on a conference call Wednesday that this summer, the S&P 500 could retest its February lows near 1,800. That's 16 percent below Wednesday's record close of 2,152.43.

She cited factors such as valuation, seasonal weakness and uncertainties around the upcoming U.S. presidential election and Europe.

"Another leg down in oil prices could drive the U.S. market down as well," she said.

While U.S. stocks trade near all-time highs, U.S. crude oil futures have fallen more than 13 percent from above $51 a barrel last month to settle below $45 on Wednesday.

Earlier this month, Goldman Sachs Chief U.S. Equity Strategist David Kostin told clients...