Deutsche Bank analysts believe the rally in technology stocks that began at the end of July still has room to run further.

Parag Thatte and the Deutsche Bank team wrote in a research note sent to clients last Friday: "Mega-cap growth stocks (MCG) and the technology sector have gained 14% cumulatively since the end of July, hitting a record high. Meanwhile, the rest of the S&P 500 constituents fell 3% over the same period, with a decline of 5.5% over the past five weeks. The relative excess returns of mega-cap growth stocks and the technology sector have reached the upper half of the long-term trend channel, but have not yet touched the top of the channel."

Thatte said investors' positioning in large-cap consumer discretionary stocks is moderately overweight, and earnings growth performance is "very strong"; however, interest rate volatility will pose an adverse headwind.