Equities began the week on shaky footing but managed to rise by the end of Monday's session leaving the S&P 500 at the highest levels in over a month. The move comes on the back of a near 10% decline in oil prices but investors should not be complacent. This week the market will get another read on consumer-level inflation and it is not expected to be a good one. The PCE Price Index will be released on Thursday and is expected to accelerate to 5.5% YOY at the core level. If correct, this will be the hottest level of consumer inflation in over 3 decades and the 11th month inflation has accelerated above the FOMC's 2.0% target.

Other risks for the market are emerging as well. Manufacturing closings in China's key hub of Shanghai are spreading and threaten to bring the global supply chain to its knees. Even if the closings are limited and short-lived they will have a far-reaching effect when it comes to product availability and the impact on the supply chain.