Equity markets cratered again on Friday to end a down week on a sour note. The reason is the Omicron variant on top of a Wall of Worry built on supply chain disruption and mounting inflation. The S&P 500 is down about 4.5% from its recent high and looks like it could easily make it a full 5%. The question now is if a 5% correction is all we?re in for or if the selloff will worsen?

This week?s attention will turn to the Q4 earnings cycle and CPI report on Friday. We?re still a month away from the peak of the Q4 reporting season but there are some reports to be aware of. On the economic front, CPI data for November is due out on Friday and could move the market as well. Consumer-level inflation has been running hot and is expected to do so again this week.