Both European equities and US futures had a difficult start on Monday following the disappointing outcome of Doha's conference. Nevertheless, both equity markets were able to bounce back and to close at session's high.

Europe:

The Sigma Whole Europe Index is now close two its March high. We believe this level will act as a resistance area: we can clearly count 5 sub-waves from point 'b?' on the chart. This means current up leg could nearly be over.

USA:

We can clearly identify a 5 waves pattern starting in mid-February. On top of that, we can also identify 5 sub-waves from '4?'. So, the whole pattern looks complete and a short term reversal is now possible.

Conclusion:

Based on our wave count, the whole up leg started in Mid-February looks complete. So, we believe the equity market could face some difficult times in coming sessions. On top of that, we had a couple of negative reactions after some earnings release: Netflix -12%, Illumina -18%, IBM -5%, ...

On a risk/return approach, we believe the NDX is attractive to short at current levels (4570).

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