In its sector flow update note on Thursday, Citi said the tech selling is continuing.
“We have seen further selling in the tech sector in particular in the last week,” said the investment bank, adding that recent flows have been biased towards selling.
“This week saw large tech selling activity by long-only managers, but most sectors saw outflows,” they added.
On the other hand, Citi notes that signals based on the firm’s model favor industrials and consumer discretionary over tech, health care, and communications.
However, they note that seasonal analysis shows flows are more likely to be negative around tax deadlines (now) and into quarter-ends. This is an important point, as this week is the week before the US tax deadline.
