CITIGROUP strategists including David Chave say excessive bullish positioning in
U.S. tech, driven by ongoing AI enthusiasm, has pushed long bets to extremes and
leaves the Nasdaq 100 particularly exposed. "Concentrated long exposure in the
index 'increases the likelihood of profit-taking and long-covering on any
negative catalyst', raising downside risk," they said. Since late March the S&P
500 has risen about 20% and the Nasdaq 100 about 33%; momentum indicators show
the Nasdaq 100 has been overbought for nearly six weeks.
