The rebound in equities hit a roadblock in the form of resistance at the 4,150 level last week and may have a hard time moving higher. The move was capped with a lackluster day on Friday that was sparked by hotter-than-expected employment numbers. The NFP report shows employment and wage gains both accelerated on a month-to-month basis and put added pressure on the Fed to hike rates.

This week's big news will be the CPI report on Wednesday. The report may show inflation coming down from the previous month but there is risk in that outlook. Not only was the PCE price index hotter than expected but indications from the bulk of S&P 500 companies is for systemic inflation to continue into the 4th quarter.