Citigroup turns cautious on US stocks as market exuberance flashes warning signs

Oct 13 (Reuters) — Citigroup dropped its "overweight" call on US equities and closed its long position in the S&P 500 Equal Weight index on Tuesday, saying it is taking some risk off the table as signs of market exuberance build. Here are some details: The brokerage said its POLLS indicator, which tracks positioning, optimism, liquidity, leverage and stress, recently reached levels that have historically coincided with market peaks "We tactically take some risk off the table," the brokerage said The S&P 500 Equal Weight index tracks the same 500 companies as the traditional S&P 500 but gives each stock roughly equal weight, reducing the influence of mega-cap companies and offering a broader gauge The move reflects growing caution over stretched market sentiment, although Citi stopped short of turning bearish on stocks Citi said it is growing more cautious on equities as market gains appear increasingly vulnerable to signs of trouble, although it is not advocating a broad flight to safety Conversely, Goldman Sachs upgraded global equities to "overweight" on Monday, citing more attractive valuations following the recent market pullback (Reporting by Kanishka Ajmera in Bengaluru; Edit