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Investing.com -- JPMorgan analysts said in a note Wednesday that while the recent equity market rebound has lost momentum, any short-term pullback in large-cap stocks should be viewed as a “buy the dip” opportunity.

“Equity rebounds have either decelerated or stalled since mid-May,” JPMorgan (NYSE:JPM) wrote. “The associated signals increase the probability for corrective price action over the near term.” 

However, the bank’s analysts maintained a bullish stance on large caps, citing strong medium-term trend dynamics. 

“That bullish medium-term outlook stays in gear provided the S&P 500 Index holds above key levels in the 5600s,” stated JPMorgan.

The bank added that large-cap leadership remains intact and that “we suspect any near-term weakness in large-cap equities will provide a ‘buy the dip’ opportunity ahead of a potential test of the cycle highs at some point this summer.”

JPMorgan also flagged signs of exhaustion in more cyclical parts of the market, noting that the Russell 2000, Materials, and Energy sectors have stalled near key resistance. 

“Commodity price action reinforces the signaling for those two sectors,” the firm added, highlighting DuPont (NYSE:DD) and EOG Resources (NYSE:EOG) as examples of weaker setups within those groups.

Conversely, JPMorgan pointed to healthcare as a potential bright spot if broader markets weaken. “We also see the beaten up Healthcare sector as an interesting long opportunity,” analysts wrote, citing recent buy signals and proximity to support levels. Bristol Myers (NYSE:BMY) Squibb was noted as a stock with an “attractive setup and chart pattern.”

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