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 .EWGSPC 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 .SPX 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