Citi's equity positioning model says US flows are supportive, though European squeeze risk builds

Citi says that global equity positioning remains supportive, but regional divergences are becoming more pronounced. In the US, risk flow and short covering are sustaining bullish positioning, though exposure is increasingly concentrated as Russell 2000 positioning reaches extended levels. In Europe, Citi says that improving risk sentiment and lower energy concerns have driven fresh longs and short covering, with the DAX the most likely source of further squeeze-driven upside. And in Asia, citi suggests that trends are less uniform; the KOSPI has seen a meaningful rebuild in bearish exposure, though the Hang Seng's rebound has been supported by the unwinding of profitable shorts.