Equity markets pulled back on Thursday after setting a new intra-day high. A hotter-than-expected read on CPI underpinned by rising gasoline and housing costs sparked the sell-off, leaving investors wondering what to do next. That may be decided today following results from the Big Banks, which are expected to show significant top and bottom-line growth driven by higher interest rates. The takeaway from the reports will be centered on the economy, consumer health, and the outlook for capital returns.

The rebound in the S&P 500 appears to be over. The index shed about 1% after hitting the new high and showed significant resistance at the 30-day moving average. If the market follows through on this signal, it will continue to sell off regardless of bank results. The next FOMC meeting is 3 weeks away; the market does not expect another hike but it is bracing for another hawkish statement.