Citigroup strategists said Wednesday that futures flows signal "limited enthusiasm” in the market, as investors show reluctance to take on new long positions, with only a slight uptick in risk appetite.

Despite the recent unwinding of shorts, S&P 500 futures positioning remains almost entirely net long. However, analysts observe that investors are hesitant to expand existing long positions.

"We have yet to see a significant shift in futures positioning that would suggest a material change in sentiment. Investors appear at best cautiously optimistic,” they wrote.

In the US, Nasdaq 100 flows turned bearish even though the index ended the week stronger.

Meanwhile, the European positioning remains little changed, with the former now one-sided after the recent unwinding of short positions.

“However, with average profit/loss levels small, positioning risks are muted. European Banks remains the stand-out on both positioning and profit levels,” analysts explained.

“The recent resurgence of interest in the sector coupled by a strong earnings season has left positioning deeply extended, with profit-taking risks elevated,” they wrote.

In Asia, the bullish trend seems to be moving away from the S&P/ASX 200 and Nikkei 225 toward the and , where steady bullish momentum is evident.