Equity markets pulled back on Tuesday to start a holiday-shortened week on uncertain footing. The move comes at the start of a light week regarding data and earnings, which could be a sign that bulls are not as confident as they may appear. The market is moving higher but with little cause other than an expectation that the FOMC will soon be done hiking interest rates. The critical factor is that the FOMC is not finished with hiking rates, and it may cause more bank failures in the coming weeks and months.

The S&P 500 is trending higher and may set another new high. The next target for solid resistance is at the all-time high, which may be reached by the start of Q2 earnings reporting. The peak of the reporting season begins in 3 weeks and may provide fuel for the rally. The risk is that the outlook for Q3 and Q4 will deteriorate and sap upside potential from the market.