Trump Will Backstop Stocks This Year, but Watch One Key Area of the Market

• Bank of America sees small-cap stocks as key indicator to watch for the broader stock market.
• High concentration in a handful of stocks and elevated valuations limit stock market upside, BofA said.
• Small-cap stocks face challenges from high interest rates, affecting profitless companies.

Bank of America said in a Friday note that one key area of the stock market will help determine whether the bull rally will continue.