Citigroup says investors are reaching a tipping point in their bullishness on tech stocks.
A commonly heard battle cry throughout history has been “hold the line,” which is exactly what the S&P 500 SPX didn’t do following Friday’s monstrous rally, putting a bull market just out of reach again. Tuesday’s softer setup may not change that.
One lingering question as summer shapes up is just how long the dominance and shoring up of markets by a few big tech names will carry on. Apple AAPL may have offered an early sign of how Big Tech is not invincible with shares softer again in premarket after disappointing some investors with a pricey virtual-reality headset. .
Pushing into June, the strategists point out that investors have now moderated those net long S&P positions and continue adding longs to Nasdaq futures. “Remember, NVDA and bitcoin used to be joined at the hip before the AI bubble and bitcoin used to often move before NVDA. They decoupled as crypto mania turned to AI mania but are still both part of the same broad ecosystem of supertech disruptor etc,” said Donnelly, who offers up the below charts.Read: What if the S&P 500 fumbles its bear-market exit? What strategists think of the role of tech in this rally.
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