We became more positive on equities late last week after adopting a more cautious short-term stance in late January.
Fears and uncertainty around the coronavirus (COVID-19) spreading and becoming a global pandemic have gripped markets and sent US yields tumbling.
The technology sector has outperformed the S&P 500 index by roughly 25% over the last year and with four 1-trillion dollar companies representing almost 17% of the S&P 500, some comparisons are being made to the technology bubble of the late 1990s.
Coronavirus concerns continue to weigh on markets as investors focus on the spread of the virus.
With the sharp selloff in markets over recent days on uncertainty surrounding the coronavirus, many technical indicators are now suggesting the market is becoming stretched to the downside and the risk/reward ratio is improving.
Stocks continued to add to losses on Tuesday over coronavirus concerns. The CDC warned about a possible spread of the virus to the US.