The bank said bearish positioning is increasing more rapidly than share prices are declining, as investors continue taking profits and opening new short positions. However, he cautioned that the expanding number of bearish positions "creates asymmetric squeeze risks should sentiment stabilise or macro data surprise positively." Among the major European indices, the FTSE stood out as a relative outperformer, with positioning improving as investors covered short positions and increased risk exposure. The bank identified South Korea's KOSPI as "the market most exposed to further deleveraging" because investor positioning remains elevated despite the recent decline in the index. Earnings Could Determine the Next MoveLooking ahead, Citi believes the upcoming earnings season will play a crucial role in determining whether investor positioning begins to stabilise or whether further unwinding takes place across equity markets.