Key facts
- Citigroup downgraded its recommendation on US equities to neutral from overweight.
- Citigroup closed its long position in the S&P 500 Equal Weight index.
- The brokerage cited signs of market exuberance and stretched sentiment.
- Citigroup's POLLS indicator reached levels historically coinciding with market peaks.
- Goldman Sachs upgraded global equities to overweight on Monday.
Citigroup downgraded its recommendation on US equities to neutral from overweight and closed its long position in the S&P 500 Equal Weight index on Tuesday, citing growing caution over stretched market sentiment and signs of exuberance. The brokerage's POLLS indicator, which tracks positioning, optimism, liquidity, leverage, and stress, recently reached levels that have historically coincided with market peaks.