“Materials shares, sensitive to signs of slowing in China’s commodity-hungry economy, dropped and were the biggest drag on Wall Street,” Reuters reported.

China is “guiding a little bit lower to control their inflation,” said Ken Polcari at ICAP Equities, in the report. “It is not necessarily the end of the world, but it gave people a reason to take some money off the table.”

Materials ETFs are trading near the 50-day simple moving average.

Materials Select Sector SPDR

Full disclosure: Tom Lydon’s clients own FCX and IYM.