The nagging issue of a sky-high dollar's drag on multinational companies' earnings prospects and a broad commodities slump continue to weigh on stock sentiment, at least sort of. These lingering issues could factor into trading this week and are likely on the Federal Reserve's mind as it mulls flipping the switch to higher interest rates.

The broader stock market's resiliency in the face of headwinds raises a new dilemma, at least according to some observers. Valuations, especially those fed by share buybacks, are stretched. The big worry? Wall Street may be getting pretty comfy propped up by buybacks.

China Still in Play

Global markets took some solace in a Chinese stock bounce on Monday even as another round of downbeat data there kept alive concerns for waning commodities demand from this economic giant. China's exports dropped 8.3% in July, the biggest drop in four months as weaker global demand and a strong yuan hurt manufacturers. Imports fell 8.1% from a year earlier. China's central bank has already lowered interest rates four times since November, but more cuts and other support measures may now be on the way. In fact, that expectation likely drove China's Shanghai Composite up nearly 5% for its biggest one-day gain in a month. The driver? Renewed expectations that state power will prop up the stock market, too.