Fears About China Wash Up On U.S Shores This Morning

The market opened under some selling pressure after Asian markets got killed overnight. Higher than expected GDP and CPI reports out of China sparked fears that the central govt. will hike rates and take other measures to slow the economy. I don't think this one ends pretty.

The Yen is up again versus the dollar, and that is making investors nervous that another Yen carry trade unwinding could occur like it did back in late February. But I think these fears are premature at the moment.

Earnings reports are still pouring in. GILD and EBAY both had strong reports last night, and their stocks are higher this morning.

Oil is trading down again, around $62.20. And the 10-year yield is steady at 4.66%.

Considering how many up days in a row we have had and how overbought the market is, the effect of these reports out of China should not be surprising if they spur some profit taking here. We need to see the market consolidate its recent gains for the stairstep higher pattern to continue. And don't forget all the 'Sell in May, and go away' calls that we are about to start hearing about on CNBC.