While equity markets have regained their footing a bit despite the fact that US tariffs on $34bn worth of Chinese goods went into effect on Friday, investors are still nervous over a potential trade war escalation. The equity market lacks good upside catalysts to push the S&P 500 through the 2,800 resistance level. However, many investors are hoping that the Q2 earnings season – starting tomorrow – could be their salvation. On an individual basis the earnings season can carry certain pockets higher amid strong earnings growth with most likely industries being Software & Internet, Health Care, Retailing and Energy. On an aggregate level, we believe the earnings season will fail to become the fuel necessary for new highs.