You are right. In China, in Kazakhstan,in Singapore,in Canada, in Greece, in all emerging markets and in commodities, not to mention politics. How long before we stumble?
Actually, the fear of recession is what is keeping them from raising rates. Eventually, bad news will be just that. Bad. I hope I am wrong but why else is PE being destroyed in an otherwise flat market?
There is a lot of rotation but every day fewer stocks are holding the market up. I do not foresee the market tanking any day but early 2016. Institutions, however, are selling the most vulnerable sectors now as they cannot wait until the last minute.
The disappointing earnings you refer to reflect last quarter marked to market holdings in a down market. This quarter has already improved those valuations. Market looks ahead.