The S&P continues to set new historical highs, and short sellers in the U.S. stock market are surrendering.

Recently, a team led by Citigroup strategist Chris Montagu stated in their latest research report that with the U.S. stock market hitting new highs for four consecutive weeks, investor positions in S&P index futures are "completely one-sided," and those who insist on shorting are capitulating.

Thanks to the boost from technology stocks and a broad preference for U.S. assets, the S&P 500 has set multiple historical highs this year, having risen over 27% year-to-date, and is on track to become the best-performing year since 2021.

In contrast, the positioning of Euro Stoxx 50 index futures remains net bearish, with Citigroup indicating that 100% of long positions in European stock futures are in a loss state. France and Germany are not favored by investors due to political turmoil and economic weakness, respectively.

Although there are still indications that some funds are flowing into German DAX 30 index futures and UK FTSE 100 index futures, Montagu believes this data is misleading:

"This data does not take into account the recent impact of political news in France; for investors with light positions or bearish on European stocks, the political outlook in France is unlikely to reignite their enthusiasm for European stocks."

"Position completely one-sided"! Citigroup: After new highs in U.S. stocks, short sellers have surrendered