Markets are rallying, and the S&P 500 is on track for its fourth positive weekly gain. The index is heading back towards the key resistance point of 4258, followed by 4,304.

Technology is leading this afternoon and semiconductors  are strong with the PHLX Semiconductor index up 2.44%.

The University of Michigan reported its preliminary number for the month of August this morning. We saw a decent increase in consumer sentiment, but it is still an extremely negative reading.

• Current Conditions 55.5; consensus 57.8 (prior 58.1)
• Expectations 54.9; consensus 48.5 (prior 47.3)
• 1-Year Inflation 5.0%; consensus 5.1% (prior 5.2%)
• 5-10 Year Inflation 3.0%; consensus 2.8% (prior 2.9%)

The report also shows a pretty high number when it comes to 5-10 year inflation. This indicates higher prices are becoming entrenched in the minds of consumers, and corporate America, which could make the Fed get even more aggressive.

Have a great weekend.