Caught an interesting pattern in the China market over the last few days. The Shanghai index has been on a solid run, up almost 2 percent across four consecutive sessions and sitting just above 4,130. But looking at Thursday's action, there are some signs the momentum might be fading heading into Friday.

The China market showed mixed signals yesterday - energy stocks led the gains while financials dragged things down. Shanghai Composite only inched up 5.65 points to close at 4,134.02, and you could see the struggle between buyers and sellers throughout the day. The Shenzhen index did a bit better, adding 0.51 percent. Among the big names, the banks took some hits - Agricultural Bank of China dropped hard at 2.65 percent while Industrial and Commercial Bank fell 1.51 percent. Energy was the bright spot though, with PetroChina jumping 1.75 percent and Yankuang Energy surging over 5 percent.

What's weighing on sentiment is the broader global backdrop. Wall Street got hammered Thursday - the Dow dropped 1.34 percent, NASDAQ fell 2.03 percent, and the S&P 500 slid 1.57 percent. Part of the selloff is people worried about AI's impact spreading beyond just tech companies into financials, transportation, and real estate. Crude oil also tanked on oversupply concerns, down over 3 percent.

So here's the thing - the China market has had a nice little run, but with US inflation data coming Friday and all this uncertainty about AI's real economic impact, I'd watch to see if we get a pullback. The setup feels a bit extended right now.