U.S. stocks hovered near their record levels on Monday as dull trading resumed before the release of widely-watched inflation data and the start of first-quarter corporate earnings.

The S&P 500 dipped less than 1 point to 4,127.99 after closing at a record high in the previous session. 

Wall Street has been relatively quiet with the S&P 500 moving within 1% for five sessions in a row. Market volatility has declined to pre-pandemic levels amid rising reopening optimism. The Cboe Volatility Index, AKA the VIX or the market’s fear gauge, has traded below 18 for the past four days, a level unseen since February 2020.

This week is also packed with Federal Reserve speeches and key economic data including a hotly anticipated inflation reading Tuesday, when the U.S. consumer price index is released. Economists polled by Dow Jones anticipate a 0.5% gain in CPI month over month and a 2.5% increase from last year’s level.

Fed Chairman Jerome Powell on Sunday reiterated that the Fed wants to see inflation rise above its 2% for an extended period before officials move to raise interest rates.

Plan A : Long if market retraced but supported firm above 4109. Targets are 4125, 4141 and 4156. 

Plan B : Short if market failed to support above 4109. Targets are 4085, 4061 and 4038.

U.S. stock futures were mostly flat on Monday evening ahead of a highly anticipated inflation report set for release before Tuesday’s opening bell on Wall Street.

The move in futures comes ahead of the March reading for the consumer price index, scheduled to be released at 8:30 a.m. ET. Economists polled by Dow Jones are projecting the headline index to rise by 0.5% month-over-month and 2.5% year-over-year.

Markets were quiet on Monday, with the three major indexes pulling back slightly. The S&P 500 finished just a hair under its previous record close, while the Dow slipped 55 points. The Nasdaq Composite was the laggard, shedding 0.4%.

The bond market was also subdued on Monday, with the 10-year Treasury yield edging slightly higher to trade near 1.67%. Yields move inversely to prices.

The market has been calm over the past week as Wall Street settled into a lull ahead of the first-quarter earnings season. Corporate news is set to pick up later in the week, with JPMorgan Chase, Goldman Sachs and Delta Air Lines among the companies set to report quarterly results.

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Plan A : Remain short as long as oil price stays below 59.8. Targets are 58.8 and 57.6.

Plan B : Consider long only if oil price able to trade firmly above 59.8 and surges. Targets are 60.8 and 61.4.