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Before the market opened yesterday we learned that April CPI was a mere 1.06% and Core CPI was 1.72%, well below the Fed's target 2%-to-2.5% range. Housing starts were below consensus. Then at 10:30 the Philly Fed Business Outlook showed unexpected contraction. But the S&P 500 didn't seem to mind all that much. The index opened lower, but zigzagged in and out of the green until around 2:30. That's when San Francisco Fed President John Williams told a Portland audience that the Fed could reduce the pace of QE purchases as early as this summer and end the program late this year. The index closed the day with a loss of 0.50%, breaking a four-day rally.

Here is a 15-minute view of the week so far.


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Volume increased with yesterday's decline -- about 8% above its 50-day moving average.


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The S&P 500 is now up 15.73% for 2013 and 0.50% below the all-time closing high set Wednesday.


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For a better sense of how these declines figure into a larger historical context, here's a long-term view of secular bull and bear markets in the S&P Composite since 1871.

Source: S&P 500: 4 Day Rally Snapped; Blame The Fed