Nobody Owns Software Anymore… Right As IGV Nears Breakout

Software squeeze brewing

Software may be setting up for the next squeeze higher. Positioning remains heavily skewed toward Semis and AI hardware, while mutual funds still carry their lowest Software exposure in over a decade and hedge funds only recently started adding back exposure.

At the same time, IGV is now pressing against the key downtrend line that has capped the group since Software went soggy. A decisive breakout above the $94/$95 area, combined with the fresh bullish 21/100-day crossover, could force a much larger repositioning chase back into the space.