Volatility continued on Wall Street Thursday with the major indices reversing the previous day's gains after another indication of inflation hit the market. Import prices rose at a 2.6% month-over-month clip exceeding the analyst's estimates and almost doubling from the previous month. The data, as a leading indicator of the economy, points to higher prices for consumers despite the expectation of aggressive FOMC policy action.

The risk for the market this week will be earnings. The banks kicked off the earnings season this week and so far the news is lackluster at best. If the market cannot renew the bullish spirit by the end of the week it could spell doom for the market. As it stands, the next target for the index is lower and not higher and it could move below the recent lows if the earnings news worsens.