Earnings are worse than expected and outlook for 2020 continues to fall based on the revised estimates. With the first 5% of companies that have reported, the Q3 cycle is going to be worse than expected. After the so called Phase 1 Trade Deal we are seeing both sides already back-pedaling, we expect retaliatory tariffs to be imposed and both sides will be back to square one. The rescuing the REPO market (QE4) will eventually proven to have no effect as we are in a completely different environment than the prior QE’s. The Fed induced rally will more than likely continue based on the current EW pattern.