Deutsche Bank: The technology sector's short-term appeal is declining.

Deutsche Bank strategists said market positioning remains uneven, with investors overweight technology and inflows into the sector pushing share prices close to the upper limit of their long-term trend. A strategy team led by Parag Thatte wrote that positioning in large-cap growth and technology stocks pulled back last week but remains overweight; consumer cyclicals rose to a slight overweight, while the remaining sectors are underweight. Overall equity positioning edged lower but remains a slight overweight, the report said. Discretionary investors remain slightly underweight equities, while quantitative strategy positioning has fallen from elevated levels but is still overweight, according to the report. Within quantitative strategies, volatility-control funds increased equity allocations, while commodity trading advisor funds sharply reduced equity positioning, though it remains at high levels. Equity fund inflows slowed, bond fund inflows jumped to a four-month high, and money market funds recorded their largest inflows in more than 6.5 years.