A Really Big Set Of Training Wheels

China taketh, China giveth. Yesterday there were jitters over China's central bank decision not to add to reserves (which is seen as stimulative). Today pundits rejoice over a slight increase in China PMI.

China is not going to save the economy or the stock market.

Besides, futures may have double-topped in the overnight session. While they're still up, they're not exactly turbocharged.

The S&P has a chance to quietly close the 1733.15 gap. Failure to do so should be seen as a sign of strength. 1778 is still the multi-year Fib extension target.

Getting below 1729.86 would be an early warning for a deeper retracement, perhaps back to the rising trend line (1700 area).

The TRIN is suggesting that whatever dip that may occur should be bought. It's slowly crawling up into the buy zone.

Speaking of central banks, around the world they are once again coordinating their policies for loose monetary conditions. In every corner of the globe they are scared. If everything hinges on China, that's not really bullish either. All in all, it adds up to just a really big set of training wheels.