$ESA: Similar set up to 4Q-18
The current technical picture for the $ESA is very similar to that in 4Q-18 and is essentially a pennant formation in the making. A pennant formation is essentially a continuation pattern and the measured objective for a breakdown is 2680.
Economically speaking, the US is not an economically isolated island and the PMI slipping below 50 to 49.9 should be viewed in the context of the EU and Chinese PMI which had weakened to sub-50 a few months earlier. The slowdown in US/global corporate durable goods will only accelerate as the trade war intensify and drags on. I reiterate the fact that the Chinese wants to negotiate as an equal sovereign state when Trump is negotiating based off an egoistical basis is a major hurdle to a trade deal. The main risk now is Trump doubling and tripling on crazy.
Economically speaking, the US is not an economically isolated island and the PMI slipping below 50 to 49.9 should be viewed in the context of the EU and Chinese PMI which had weakened to sub-50 a few months earlier. The slowdown in US/global corporate durable goods will only accelerate as the trade war intensify and drags on. I reiterate the fact that the Chinese wants to negotiate as an equal sovereign state when Trump is negotiating based off an egoistical basis is a major hurdle to a trade deal. The main risk now is Trump doubling and tripling on crazy.