The rebound in equity markets hit a roadblock on Friday as traders and investors brace for next week's round of earnings and economic reports. Not only is it the first of the two busiest weeks of the Q2 earnings reporting cycle but the FOMC is expected to hike interest rates by at least 75 basis points. On the earnings front, the reports are expected to be OK enough but the guidance will usher the S&P 500 into its next move. If the guidance continues to weaken the S&P 500 will have little choice other than to move lower.

Also on tap for this week? The first read of the Q2 GDP. Based on the last three months of Leading Indicators, we expect to see the figure not only come in negative but to accelerate the decline that began in the 1st quarter. The question of if we're in a recession has already been answered, yes we are. The question about how deep and how long the contraction will be is what needs to be answered next.