The S&P 500 index has reached record highs, surging 28% since the start of the year. This growth marks the continuation of a two-year bull run, with long positions hitting historic peaks for the fourth consecutive week.

According to Citi analysts, the market has become “completely one-sided,” with bears gradually capitulating, fueling further optimism among investors.

“The share of long positions in the S&P 500 continues to set new records as short-sellers gradually abandon their positions,” experts noted.

The rally accelerated after Donald Trump’s victory in the November presidential elections. Market participants anticipate tax reforms and lighter business regulations, which could boost corporate earnings.

The U.S. market is significantly outperforming Europe, where the Eurostoxx index has been in the short zone for several weeks. Moreover, 100% of long positions in Eurostoxx are currently at a loss.

The gap between U.S. and European equity positioning continues to widen, underscoring the dominant performance of the U.S. stock market amidst ongoing challenges in Europe.