By Sam Boughedda
BofA analysts said on Tuesday that futures positioning remains “slightly bullish” across most indices.
Analysts said in a research note that the past two weeks have been characterized by a combination of “slow and often marginal daily position shifts between the US and European indices.”
“Investors are clearly long the and slightly short the , with higher positioning risks for the latter,” the analysts write. “In Europe, investors are net long on all indices, but profit levels are low.”
Focusing on US equities, analysts explained that the week ended with a sharp increase in long positioning in the S&P and continued development in bearish positioning in the Nasdaq.
“For both indices, positioning is not near the extremes, with last week’s activity leading to continued increase in bearish positioning for the Nasdaq, primarily from investors exiting long positions,” they said. the analysts.
“Although aggregate loss levels have eased, short Nasdaq losses (-6.9%) remain high and with them the risk of further short covering. ETF flows have been broadly in line with the futures activity, with net outflows for the Nasdaq”.