HSBC released its June Flash PMI figure for China overnight, and it came in worse than expected at 47.7, with consensus of 48.2, the lowest reading since Aug 2012.
However, let's notice on the enclosed chart of the Shanghai Composite (SHCOMP) that the China equity market hardly reacted to the "bearish" news.
This suggests that investors expect Chinese officials to move towards the adoption of new-stimulus measures to bolster growth.
If that proves to be the case, then the SHCOMP likely is bottoming in the 1925-2000 area prior to the initiation of a strong recovery-rally period.
Meanwhile, the SPX is perched right at its all-time highs, and barring a break beneath 1672, the index could be poised for upside continuation towards the upper boundary of its Oct 2011 bullish channel, now at 1725/35.