"We think that one should not be buying the dips anymore, but use any rallies as selling opportunities," the bank noted, alongside a decision to move to an "overweight" position on emerging markets versus developed markets.
"We believe that EM (emerging market) will perform better in the environment of weakening USD (U.S. dollar), following a poor five-year run," it added.
The MSCI emerging markets index is currently up over 4 percent this year while most developed market indexes have struggled to push into positive territory. This is a sharp turnaround from the 16 percent drop last year as investors brought their dollars back home in anticipation of higher yields in the U.S.
Fund flows into emerging markets were flat in February after seven straight months of outflows, according to data at the beginning of March from the Institute of International Finance.
JPMorgan Cazenove might be cautious on U.S. stocks might there are some analysts who are still predicting a leg higher for American benchmarks.
"I think there's a little more room to run here on the S&P 500," Stephen Suttmeier told CNBC's "Futures Now" last week.
"We're going to stay very short-term positive," he said, adding that stocks would be in the clear if the S&P 500 index trades above its long-term 200-day moving average.