In the Middle

The market has pulled back after the surge last week and we are now in the middle of range.  Monday brought on some fear, but it was too short lived to really shake the bulls.  With AAPL up ahead after the close, I don't expect aggressive action by the bears.  Also just a few minutes ago, the Flash PMI numbers came out, and even though they were worse than last month, we are rallying on it because traders probably expected worse.  GDP numbers on Friday and next week's FOMC meeting will be the events coming up.  I don't get it, but GDP tends to move the market even though it doesn't forecast anything about the future. 

With Spain and Italy's equity markets so depressed, it doesn't seem like the same trigger for a crash.  A scare, perhaps, but no crash.  You only crash if there is a lot of air underneath, not when you are near 2009 low levels.  Only if China crashes, would I consider that as having potential to crash the US market.