A stock market selloff looms and it's like January again, Citi says

Stocks have since recovered all their losses, rallied to new highs, and extended their bull-market run to a record streak. But stocks are called risk assets for a reason -- their volatility -- and Citi's equity trading strategy team is alerting clients on the conditions that are brewing ahead of the next plunge.

"Indeed, after flirting with 'euphoric' levels for the past 2 weeks, Citi Research Strategy's Panic-Euphoria model finally tipped over the threshold this week [into euphoric territory], suggesting a 3x higher likelihood of negative SPX returns over the next twelve months," Antonin Jullier, the global head of equity trading strategy, said in a client note on Wednesday.