Equity markets continued to fall last week in the wake of Russian aggression and the fallout from it. The S&P 500 fell more than 1.0% on Friday alone putting the index in danger of breaking below the 4,200 level for the 3rd time in as many weeks. If this level is broken again it could lead to a capitulation and full reversal in the market. With no reason to buy, the bulls are more likely to pully their cash out of the market than sit around waiting to see what happens.

This is going to be another tough week for the market with or without the war in Ukraine. Not only is the PPI data due on Tuesday but the FOMC is slated to issue its first interest rate hike since the pandemic started on Wednesday afternoon. The market is pricing in a 25 basis point hike but a hot PPI figure could lead them to a more aggressive posture.