Strategists at Citigroup indicate that positioning levels for US equities have improved for a third straight week, supported by fresh risk capital inflows that are helping to sustain gains in the technology-heavy Nasdaq 100 index. The research team, led by David Chou, reports that overall positioning across the S&P 500, Nasdaq 100, and Russell 2000 remains tilted toward a bullish stance.

Short exposure across several major markets has declined, and the impact of short-covering rallies is beginning to fade. The team points out that positioning vulnerabilities are concentrated in profitable long portfolios, such as the Russell 2000 and select European markets. Despite geopolitical and policy headwinds, European equities continue to draw fresh risk inflows.

In Asian markets, the Korean composite index has witnessed significant short covering, which has pulled market positioning out of the deeply bearish territory.