US/China Market

Index markets trying to achieve a successful defense of the recent QE2. Rising dollar and interest rates since the Fed announcement may indicate a trading view QE2 will ultimately work in growing the economy. The question is whether markets got out in front of any good news and now must wander through a period of correction or something worse. The fact US/China relations are seemingly entering the line in the sand phase is part of a struggle which might be with the markets for years. China's entire political stability requires aggressive export policies. The US however must now balance economic and political redesigns as a part of demographic and new regulatory mandates. Any real clouding of potential growth as a result of trade battles would put a major dent in equity markets.