First Call: May 14, 2019

May 14, 2019 | First Call

I'm traveling today and will be back with a full daily note tomorrow.  Expect a bounce attempt the support level  2795- 2800.  If you've been short you can trim a little but I expect a short lived bounce as the US China trade war is not even close to being resolved.  Trump can tweet whatever he wants but nothing is happening with trade talks.  The delay will cause the "second half recovery" narrative to weaken.  Equity bullish sentiment is not at the midpoint of the range after being in the extreme zone.  If and when 50% breaks for a few days, a much deeper decline can happen.  Trade carefully.