Equities tried to advance for a second day following the better-than-expected CPI data but the move was without momentum and left the index relatively flat at the end of the day. The move gives evidence the rally in stocks is nothing more than a bear market rally but leaves another question unanswered. Assuming the market is in a bear-market rally the question is how long it will last and what will put an end to it. The best answer is a few more weeks to a month or so.

The market still has faith in the "peak inflation" theory and will be tested during that time. Not only will there be another read on the CPI index but two more reads of the PCE Price Index and all three should confirm lingering high levels of inflation. The takeaway is the FOMC is going to hike rates by at an aggressive pace in September and it could be another hot 75 basis point increase. Next week, a read on Retail Sales will be the focus for traders.