Equity markets rebounded last week but investors are cautioned not to read too much between the lines. The move was not supported by any kind of good news so is nothing more than a relief rally within the greater bear market. The news that did come out was not positive for the index as it all points to an overly aggressive Fed and the prospect of another 75 basis point interest rate hike at the FOMC meeting next week.

This week will be another challenge for the market. The CPI and retail sales data are due out and either could move the market. The takeaway is that weak CPI points to weakening economics and recession while a strong retail sales figure would support the idea of aggressive Fed action so the market may be in a no-win situation.