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Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

No bounce (never mind a big one) and a 90-month low in THE leading indicator for US Capex? What could possibly go wrong?

As you can see in today’s Chart of The Day, US Capital Spending (Capex) has some catching DOWN to do. Unbeknownst to the Macro Unaware who is just eye-balling a “level” of the ISM (rather than the rate of change), lower-cycle lows in New Orders are very bad!

And what happens when Durable Goods INVENTORIES are at The Cycle highs with New Orders crashing to new cycle lows? Margins compress and #EarningsSlowing slow at a faster rate to the downside.

CHART OF THE DAY: CapEx Has Catching Down To Do - CoD ISM NO vs Capex