Tech stocks have attracted their largest five-week inflow in history, fresh fund flow data shows. The Nasdaq Composite has climbed for three straight sessions and now presses against a trendline that has capped it since June.
The surge reverses a sharp July correction across megacap technology names. Fund flows and chart structure now point the same way, although key resistance levels remain unbroken.
Tech Stocks Attract Record Inflows as Rotation Gathers Pace
Weekly flows into tech funds spiked to roughly $19 billion, the highest single-week reading since at least 2017, according to Barchart. The four-week moving average has turned nearly vertical, capping the strongest five-week stretch on record.
Deutsche Bank strategists led by Parag Thatte counted $15.6 billion in tech fund inflows last week alone. The team argues the rotation is just getting started. It sees hyperscalers as the best risk-reward on offer, with their performance relative to the S&P 500 near a three-year trough.
The buying follows a painful stretch. The Magnificent Seven ETF fell more than 8% from its early June record, while the Philadelphia Semiconductor Index lost over 19%. Earlier this year, semiconductors had outperformed both Big Tech and crypto.
Some strategists read the pullback as a reset rather than a top.
“It would be incredibly hard for us to outrun a bear market in the Mag 7. But the fact that we’ve seen such an aggressive pullback in this group and the market has been flat-ish during that period, I view that as incredibly healthy.”
Mark Hackett, chief market strategist at Nationwide, said in comments reported by Reuters on July 29.
Positioning also leaves room to run. Deutsche Bank notes aggregate equity exposure remains slightly below neutral, with discretionary investors still underweight. Meanwhile, BofA data show that 2026 is on track to reach roughly $152 billion in annual tech inflows, a record.
Nasdaq Bounces off the 0.382 Fib, but the Downtrend Still Holds
The daily chart shows the Nasdaq Composite defended the 0.382 Fibonacci retracement at 24,707 as support. The index has printed three consecutive green sessions. It traded near 25,790 at the time of writing, up 1.6% on the day.
Price is now testing the descending trendline drawn from the record high of 27,190 set on June 1. However, a supply zone between 26,000 and 26,400 sits directly above. That area has rejected every recovery attempt since late June.
Momentum favors the bulls for now. The Relative Strength Index (RSI) is trending higher at around 53, still neutral, with room before reaching overbought conditions. Volume remains moderate, suggesting conviction has not fully returned.
Recent weakness in memory names such as Micron and SanDisk shows that the rebound remains uneven beneath the surface.
Nasdaq Price Prediction Hinges on the 26,000 Zone
A confirmed breakout above the trendline would expose the 26,000 to 26,400 resistance area, with the move starting less than 1% above current levels. Clearing that zone could put the 27,190 record back in play, roughly 5.4% higher.
However, rejection at the trendline risks another leg down. First support waits at 24,707, about 4% below. A deeper correction may reach the 0.618 retracement at 23,173, around 10% lower, where an April demand zone also sits.
The calendar could decide the outcome. This week brings a heavy earnings slate and fresh US labor market data, while investors continue to weigh Big Tech’s AI capital spending. The Nasdaq already surged 21.4% in Q2, its best quarter since 2020.
Record inflows say the buyers are back. The trendline will decide whether they get paid.
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