Welcome To Inflation Week!

Yes, its inflation week again! All eyes would be on the Producer Price Index and Consumer Price Index this week (see economic calendar). Both numbers are expected to turn in higher due to the ever rising oil price. As long as the numbers do not suggest a slow down or reduction in inflation rate, stocks would continue to come under pressure as capital cost increase and consumption decrease. And yes, the numbers are not likely to turn in either way this week as oil rebounds as expected and continues its way higher (of course, the recent rise will not affect the inflation numbers this time round). On the technical front, the Dow continues to display weakness with no signs of a relief rally yet. Its going to be a long way down.