Equity markets advanced on Wednesday despite another cooler-than-expected economic report. The housing starts and building permits figures were weaker than expected despite a recent downtick in mortgage rates. The news indicates a slowing within the housing sector and one that could gain momentum as the year progresses. Mortgage rates are back in the 7.5% range for an average 30-year mortgage and will likely rise, given the outlook for FOMC policy. The FOMC meets in less than a week and is expected to hike rates another 25 basis points.

The S&P 500 continues to rise but is heading for a hard ceiling. How it gets is still questionable, but signs are growing that the top could be closer than many market participants realize. The next target for solid resistance is at an all-time high, which will be reached soon. At the pace the market is advancing, the all-time high could be reached by the end of the summer. If the market can't move to a new high, the odds are high that equity markets will remain range bound for the remainder of the year.