CPI Due Out Tomorrow

CPI data for July will be released tomorrow and market participants are watching closely. In order for the market rebound to continue, we believe there needs to be a slowing or reversal in trajectory of inflation month-over-month. Expect to see increased volatility surrounding the release of the CPI report on Wednesday, August 10th. The key support level we are watching on the S&P 500 index this week resides at 4100, while key resistance lies at 4200. A daily close past either of these levels could hold clues to near-term market direction.