The major indices rebound strongly on Monday regaining all of the prior week?s losses in a single session. The caveat is that price action met resistance at the short-term moving average and it may cap gains in the near term. If the index can not make a firm move above the 4,605 level another sell may be inevitable regardless of this week?s economic data. With earnings season wrapped up and the peak of Q4 reporting still a month away all eyes will be on the data.

This week?s data is topped by the November read of CPI which is due out on Friday. The release is expected to show the 9th month of rising inflation and inflation above 2.0%. Regardless of the read, it is expected to reinforce the idea of accelerated Fed tapering, the question is by how much? A hot figure could advance the timeline for rate hikes and put the first increase firmly in May versus June as currently expected.