The S&P 500 rocketed to a new all-time high last week fueled by good news. With earnings better than expected, economic data strong, and the Fed?s taper weaker than expected upward momentum should continue through the end of the year. The bad news is that euphoria is setting into the market and that spells danger for investors. At some point, the market will come crashing back to reality.

This week the market will be focused on the inflation data. Not only is the CPI and PPI data due out but also the 5-year inflation forecast. If inflation is running hotter than expected it will put more pressure on the FOMC and that could result in a quicker taper. Also on tap this week are reports from hundreds of small and mid-cap stocks so it will be a busy one.