Analysts at Citi said in a note that amidst the market uncertainty, the Nasdaq is favored.
The investment bank explained in its equity markets positioning model note this week that investor positioning in US equities stabilized after a pick-up in long flows over the past week.
Meanwhile, Nasdaq's bullish momentum was back on the rise, with the largest increase in weekly flows compared to other indexes we track.
"S&P positioning remained mildly bullish despite the rise in long flow activity," said Citi. "This was partly due to the sustained hold out of existing short positions, unlike Nasdaq where unwinds of remaining shorts coupled with new risk flows have led to an asymmetric and rising bullish positioning setup on the Growth heavy index."
Meanwhile, in Europe, recent trends are said to have remained unchanged, with position levels declining across EuroStoxx, DAX and European Banks. The latter saw the largest deterioration in bullish positioning last week.
"European Banks positioning declined the most from increased profit-taking activity," wrote Citi. "Consequently, both positioning and long profit levels have eased off the risky levels seen the week before."