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Consumer price inflation data is expected at 8:30 a.m. ET and it's projected to show a 0.1 percent decline but a 0.2 percent gain when looking at the CPI, minus food and energy. There are also a few earnings including Deere, VF Corp, Allianz, Pinnacle West and Cabot Oil & Gas.
Oil rallied early Wednesday, helping lift stocks. When crude futures gave up gains Thursday, equities started to weaken. West Texas Intermediate rose modestly to settle at $30.77 on Thursday.
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"Energy staying north of $30 on WTI would be a positive, considering the amount we moved off the lows here. More good news than bad out of the economic data stream is a new trend for us," Hogan said. He said jobs, industrial production and retail sales all surprised higher, so a pickup in weekly wages in the CPI number would also be a positive. "What it doesn't look like is a recession, and that had been a concern."
Hogan said the next target for the S&P on the upside is 1,950, a level many technicians are watching. "A lot of people look at the same technical, key off the same thing, and they become self-fulfilling," he said.
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Besides CPI, the bond market will be focused on Cleveland Fed President Loretta Mester, who is scheduled to speak on the economy and monetary policy at 8:40 a.m. ET.
Traders will also be looking overseas Friday as the European Union holds a summit that could be the make or break moment for the United Kingdom's membership in the bloc. If a deal is struck, the U.K. could put membership in the EU to a vote.