Can the housing market heat up the inflation debate again?

One of the most important data of the day was the US House price index. After Mr. Powell's speech on Friday, now eyes turn to the latest inflation and labor market data, before the September meeting. 

On Monday, S&P 500 and NASDAQ, both close on record highs, mostly by the tech stocks support. Today, weakness first started in Asia, even though later and in the last trading hours they could recover the earlier loss and close higher. In the following, European stocks also were performing weaker than expected as inflation numbers in Eurozone and some European countries, raised inflation concerns in Europe, too. 

And now, in the US season, caution is clearly visible in the market. In the first trading hours, Dow Jones is up by 0.10%, after yesterday's fall, S&P 500 is trading flat and Nasdaq is down by 0,10%. 

This fall in the US stock market comes after reviving the fears of earlier tapering. And pricing more on tapering is because of US economic data that showed that house and rental prices rising at some of their fastest pace on record. 

According to the published data earlier today, confirming the House price index rising 18.8% in its annual rate in June. Inflation in the housing market is a bit more worrying than in other markets because it is more lasting than in other sections. This is why exactly a few months earlier, the Reserve Bank of New Zealand started decreasing the Mortgage-backed security. And now these data, cased the same guessing in the US as well, that these data will bring the same results in the US as well. Now we cannot be sure that tapering will not be started earlier than 2022. 

This caution and unreliability are clearly visible in the below Dow Jones chart, in the second part of August, above 35,000. OBV trend line is slowly increasing, RSI is flat at 56 and price is above both 20 and 50 MA lines. However, the recovery after free fall of 17, 18, and 19th of August, could not reach its 16ths high at 35,620. Suffering under this level can be a signal of accepting this level as a key resistance. If the asset cannot close above this level, before NFP data, can decrease more and wait for employment numbers, to have a clearer idea.