© Reuters. Bearish momentum is growing: Citi’s Montagu
According citi group (NYSE:), there has been a notable shift in sentiment in August and September, moving from maximally bullish stock positioning to increasingly net short futures positioning.
This change is indicative of growing bearish sentiment on a global scale. Citi analysts point out that positioning in the Nasdaq market has become unilateral and clearly short.
However, despite the prolonged sell-off, net positioning across all markets is not considered overextended. Furthermore, the gains and losses related to this change in positioning have not been very significant.
“This leaves positioning relatively light and broadly reflects the apparent bearish sentiment globally,” the analysts wrote in a client note.
“The S&P 500 is modestly net short (-0.9 normalized) after turning negative last week. However, there are still significant amounts of long positions and ETFs have seen inflows, so the indication is not as bearish as for the Nasdaq.”
Otherwise, the Eurostoxx 50 stands out with the most bearish net positioning. However, recent momentum in this market has been relatively sideways, indicating a degree of uncertainty and a lack of strong directional movement.
