High stock valuations suggest investors think the US economy will avoid recession, but expecting more equity gains is a stretch, Barclays says

• The S&P 500 is up about 18% from its October lows, getting close to reach bull-market status. 
• But Barclays says "the bull case for equities, like valuations, is still a stretch."
• Earnings estimates are still high for an economy that's unlikely to skirt a recession, the bank says. 

The benchmark for the largest stocks in the US is knocking on the door of a bull market, hoisted from lows in part by investors optimistic about prospects for the economy. But Barclays says the case for a sustainable new bear market is a stretch for now.