China makes a lot more sense, except for the precise timing. It started while Bernanke was speaking.
July earnings could be interesting. If they surprise to the downside across the board, the Fed is really in trouble. Though I’ve seen no trend in warnings that would make that likely. Employment doesn’t reflect that either. It just looks like slow as a snail sluggish growth. If earnings get confirmed, I’d be surprised if this 5% adjustment doesn’t disappear over the course of the summer.
