(Bloomberg) -- Flows suggest that investors are positioning for more losses in the tech-heavy Nasdaq 100 Index, according to Citigroup Inc. strategists.

Nasdaq futures continued to attract bearish flows last week, leaving positioning heavier on short bets rather than long, the team led by Chris Montagu said. That suggests “few investors are comfortable taking a bullish view on the possibility of a near-term reversal for the growth/tech related index,” they wrote in a note dated Sept. 18.

Still, the overall momentum in bearish bets has cooled and investors are sitting on smaller profits, limiting the risk of a sharper pullback, Montagu said.

After leading the rally in US stocks earlier this year amid a buzz around artificial intelligence, the Nasdaq 100 has retreated since late July as investors again worry about the possibility of interest rates staying higher-for-longer. The tech-heavy index is now down about 3.9% from a peak on July 18. 

Separately, a note from Bank of America Corp. on client flows showed tech had the biggest redemptions in the week through Sept. 15 after leading inflows in the previous week. The next clue for investors will come from the Federal Reserve’s policy statement on Wednesday. Economists expect no change in rates this week, but see the potential for officials to pencil in one more move later this year.

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