Analysts at Citi said in their Equity Markets Positioning Model note on Tuesday that net positioning declined for the S&P 500 as investors unwound $9.4 billion in long positions last week.
The firm stated that this reversed most of the risk flows observed the week prior and led to a moderation in bullish positioning.
"Bullish positioning eased as macro releases surprised to the upside last week. S&P positioning moderated from extended bullish levels while Nasdaq positioning stood firm," they wrote.
Citi added: "Nasdaq weekly flows were limited, and net notional was near unchanged. The current setup of declining bullish positioning and profit levels reduces overall positioning risk with last week's flows suggesting a decline in risk appetite."
Elsewhere, the bank said bullish positioning in Europe reduced for EuroStoxx and DAX, but investors continued to add new risk flows in European Banks.
"Both Euro Banks and S&P/ASX 200 reflect extended levels on both positioning and profits, leaving ongoing elevated risks of profit taking," stated Citi.