Equity markets pulled back on Tuesday as investor confidence erodes. Persistent high inflation, high interest rates, and a lack of debt ceiling resolution have taken their toll, and markets are facing volatility until the issue is resolved. Additionally, there is growing concern discretionary spending will fall sharply this summer and lead to recession.

The next turning point for the market may be at hand. The S&P 500 is within a critical resistance zone with key inflation data due Friday. The PCE price index is expected to remain hot and keep the Fed on its current path.That is still the question to be answered and the market generally doesn't like uncertainty.