ZTE new deal



Outlook 05/22: The easing of trade tensions between the U.S. and China is continuing, with the latter pledging to cut import tariffs on passenger vehicles to 15%, down from 25%. Import duties on car parts will be reduced to 6%. Washington and Beijing are nearing a deal that would remove an existing U.S. order banning American companies from supplying Chinese telecommunications equipment maker ZTE Corp, the deal could include China removing tariffs on imported U.S. agricultural products, as well as buying more American farm goods.

/ESM8 Value: YVAH 2736 YPOC 2732.50 YVAL 2729

/ES Plan: Yesterday market closed balanced and overnight inventory is bullish (GBT 2745), moving above yesterday's value, so we've these options:

A) If market remains above YVAH 2736 with bullish internals, be a buyer leaning on 2736-25 towards ONH 2739 GBT 2745 and PBT 2748. 'Look below and fail' is a bullish signal.

B) If market starts to move below YVAH 2736 with bearish internals, become a seller leaning on 2736 towards GAP 2733 and YVAL 2729. 'Look above and fail' is a bearish signal.

Today's Economic Calendar

10:00 Richmond Fed Mfg
01:00 PM 2-Year Note Auction

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

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