S&P 500 Exposure Hits Levels That Preceded 10% Slide, Citi Says

  • S&P 500 positioning is now at levels last seen in mid-2023
  • Montagu says extended positioning raises drawdown risk
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Exposure to the S&P 500 has reached levels that were followed by a 10% slump in the past, according to Citigroup Inc. strategists.

Long positions on futures linked to the benchmark index are at the highest since mid-2023 and are looking “particularly extended,” the team led by Chris Montagu wrote in a note.