The Nasdaq 100 Index has risen 30% since March.

Over the past month, the realized correlation among Nasdaq 100 constituent stocks has been higher than that of the S&P 500, indicating that capital is becoming more concentratedly flowing into a small number of AI and tech leaders, and the market structure is becoming more one-dimensional.
Grinacoff noted that multiple types of institutional investors, including hedge funds, systematic strategy funds, and traditional mutual funds, are continuing to chase the AI sector higher.
“Traditional mutual funds basically need to play catch-up to their own benchmarks.” This means that once the AI trade shows signs of easing, the space for institutions to keep adding positions and absorb selling pressure will become increasingly limited, and the market may rely even more on retail investors to provide support.
Currently, retail investors’ dip-buying can’t keep up with institutions’ taking-profit.
Deleveraging is still ongoing!