Okay I might've taken that a bit too far.
But we all agree that China getting a bit jiggier with stimulus along with Spain being pulled out of the sewer by Europe are probably going to be key to the current S&P 500 levels holding up and giving us something to build on.
Here's what you need to know in two NYT articles:
HONG KONG — The Chinese economy, widely seen until the last few weeks as the strongest remaining locomotive that could drag the global economy back from the brink of recession, showed a second month of anemic growth in May and performed even worse than the already lowered expectations of most economists.
Growth in industrial production, retail sales and investment in fixed assets like factories and office buildings was little changed from April, according to data released on Saturday afternoon in Beijing by China’s National Bureau of Statistics. Some economists had considered the April figures to be a fluke and had predicted a rebound in May, when the Chinese government began measures to rekindle growth.
Spanish bailout (they're calling it the 'Spailout' which I dislike):
MADRID — Responding to increasingly urgent calls from across Europe and the United States, Spain on Saturday agreed to accept a bailout for its cash-starved banks as European finance ministers offered an aid package of up to $125 billion.
European leaders hope the promise of such a large package, made in an emergency conference call with Spain, will quell rising financial turmoil ahead of elections in Greece that they fear could further shake world markets.
The decision made Spain the fourth and largest European country to agree to accept emergency assistance as part of the continuing debt crisis. The aid offered by countries that use the euro was nearly three times the $46 billion in extra capital the International Monetary Fund said was the minimum that the wobbly Spanish banking sector needed to guard against a deepening of the country’s economic crisis.
Frankly these are the two big fears that are keeping us from being able to enjoy our own robust 2% economic growth here in the US markets.
Let's hope an abatement of these fears takes hold.