Citi’s Chew Sees US Tech Stocks at Risk From Bullish Positioning

Citi strategists, led by David Chew, warn that extended bullish positioning in US technology stocks — concentrated in the Nasdaq 100 (US Tech 100) — raises the risk of profit‑taking and long liquidation on any negative catalyst. Since a late‑March low the S&P 500 is up ~20% and the Nasdaq has surged ~33%, with the latter spending roughly six weeks in overbought momentum territory. Weekly flows sit in the top quartile and are driven by new longs, making Nasdaq especially vulnerable. Citi contrasts this with the S&P 500 (still supported by short-base anatomy) and notes Europe (Euro Stoxx / Europe 50) has moderately bearish positioning that could flip into a squeeze on positive news.