Market analysis: Normalization in process
Market phase: Normalization in process

US: Exposure to US Equity markets 85% / Cash 15% (unchanged)

Europe: Exposure to European Equity markets 85% / Cash 15% (unchanged)

M&A activity looks to trigger a rebound in tech stocks on Monday after another negative week on the Nasdaq100 (-4.6%) led by GAFAM and Semiconductors.

Nvdia offers $40bn to acquire Arm, a top supplier of designs and intellectual property to most of the global semiconductor industry, while Oracle has been choosen to take over Tik Tok according to the press and Gilead will pay $21 bn to buy Biotech Immunomedics Inc. and its breast-cancer drug. The M&A rush could be a support for Tech stocks short term, in a sign big Tech should use their huge market cap to trigger opportunities, but this may be not enough to resume the strong momentum, given the short term correction in progress led by demanding valuation and rotation towards cyclicals.

AstraZeneca confirmed this weekend it has resumed British clinical trials of its COVID-19 vaccine, one of the most advanced in development, after getting the green light from safety watchdogs. This is a positive for " back to work" stocks , that remained linked to the outbreak situation and progress in new vaccine/treatments. Therefore overall good news, on all fronts but the correction in process on the Technology segment is still alive.

Our Market Pressure Index now stands at 56/100 (-6), into the "risk-on" zone (below 58).
The market participation/density is neutral/positive. There is 43% (=) of major bullish configurations for the Stoxx600 and 50% (=) for the S&P500, while major bearish trend configurations are 34% (=) for the Stoxx600 and 30% (=) for the S&P500. Therefore the density analysis reflects a neutral to positive momentum in Europe and in the US (spread now at +9 in Europe and +20 in the US). During risk-on/bullish market phases, the spread is expected to be > 30.