Citi Strategists See Stocks Selloff Easing on Futures, Flows
- ETF flows, futures positioning indicate bearishness near peak
- Strategists don’t yet see bullish reversals following retreat
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The prolonged slide in equity markets may finally be reaching a floor, at least for now, according to Citigroup Inc. strategists.
Slowing outflows from exchange-traded funds and repositioning in futures contracts indicate that “we are near peak investor bearishness across equity markets, though there are not yet any bullish reversals,” Citi strategists led by Chris Montagu wrote in a note to clients. “Going forward, there may increasingly be a bias towards unwinding the large short positions.”