Deutsche Bank: The performance of large technology stocks has dropped relative to the S&P 500 index to the lowest level in ten years.

Deutsche Bank strategists, including Parag Thatte, wrote in a research report that on Thursday, large cap stocks and tech stocks have been outperforming the rest of the S&P 500 components, rebounding from a long-term trend channel bottom, and continuing the rebound on Friday. The strategists noted that in the past, this group tends to experience a rally after touching the bottom of the channel in a backdrop of rising profits. The report pointed out that this year's performance "depends entirely on changes in valuation multiples rather than adjustments in earnings expectations, in stark contrast to last year when earnings expectations drove the performance."