Markets still have 'wood to chop' over the intermediate term, says Citi's Scott Chronert

• Short-term market positioning, previously skewed negative due to the Iran conflict, is showing signs of alleviation.
• Intermediate-term outlook remains cautious, with concerns about sustained high oil prices, their implications for rates and currency, and upcoming Q1 earnings.
• The S&P 500 is down about 5% since the 'war began', which is within a typical 5-10% corrective phase, but a 'classic flush' with high volatility and volume has not yet occurred.
• The 'Goldilocks' economic narrative (soft landing, easier Fed) is being challenged by higher oil prices, suggesting a need for another month or so to gain conviction on a durable market bottom.

Scott Chronert of Citi provides a mixed outlook on equity markets. While short-term positioning suggests some relief from recent negative sentiment, the intermediate term faces challenges from persistent oil prices and the lack of a 'classic flush' in the market. He suggests more time is needed to confirm a durable bottom, as the 'Goldilocks' economic scenario is being tested.