US-China deficit

Outlook 05/18: After President Trump said he doubts that trade talks with China will be successful, China denied that it had offered a package to slash the U.S. trade deficit by up to $200 billion, hours after it dropped an anti-dumping probe into U.S. sorghum imports in a conciliatory gesture as top officials meet in Washington. U.S. officials had said in Washington on Thursday that China was proposing trade concessions and increased purchases of American goods aimed at cutting the U.S. trade deficit with China by up to $200 billion a year.

/ESM8 Value: YVAH 2726 YPOC 2719 YVAL 2715

/ES Plan: Yesterday market closed bearish (PBT 2706). Overnight shows bearish bias, moving below yesterday's value, so we've these options:

A) If market remains below YVAL 2712 with bearish internals, become a seller leaning on 2715 towards GAP 2709.25 PBT 2706 and LVN 2700. 'Look above and fail' is a bearish signal.

B) If market starts to move above YVAL 2715 with bullish internals, be a buyer leaning on 2715-17 towards GAP 2718 ONH 2727 and HVE 2732. 'Look below and fail' is a bullish signal.

Today's Economic Calendar

9:15 Fed's Kaplan Speech
9:15 Fed's Lael Brainard Speech
1:00 PM Baker-Hughes Rig Count

Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.

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