Short positions in Nasdaq futures continued to increase, albeit at a slower pace compared to recent weeks, according to Citigroup strategists.
The strategists noted that an additional $3.9 billion in new short positions on Nasdaq futures were added, representing the most significant negative weekly change across various indexes.
In contrast, short positioning in the S&P 500 futures leveled off, with net positioning remaining mildly bearish.
Citigroup's analysis suggests that profit and loss levels for both the Nasdaq and S&P 500 indexes are currently in a range that doesn't provide a clear indication of immediate risk for significant unwinding of positions.
In the European market, bearish levels in the EuroStoxx index have been rising, indicating growing negative sentiment and making it one of the most extended short markets.