Equity markets continue to tread water beneath significant resistance points as investors weigh the onslaught of earnings reports. While most reports are better than expected, the news is often mixed regarding analysts' expectations, and guidance is more in line with the consensus than not. In the eyes of a market that needs improvements, the news is ok but not enough to spur a sustainable rally.

Next week will be a challenge for the market. Not only does the Q1 reporting season kick into high gear, but the PCE Price Index is due out on Friday. Given the state of inflation and interest rates, this reading may be more important than ever. A hot report, or even one that is only slightly cooler than before, may not be enough to excite investors. With high inflation, the market needs to expect interest rates to remain high and that general demand will continue to decline.