Equity markets plunged on Thursday following hot inflation data. The September read of the Consumer Price Index came in hotter than expected at the headline and core levels as the cost of housing and wages continue to rise. The data seals the deal in regard to the Fed's next move which will be another 100 basis point interest rate hike according to the CMEs FedWatch Tool. If the next PCE Price Index reading is hot as well the FOMC could be forced to become even more aggressive. Technically speaking, the move hit a key support target at 3,500 which sparked a massive rebound that left the index up for the day.

Earnings season gets into high gear today with reports from the Big Banks. The banks are expected to show the benefit of rising interest rates but may scare the market if consumer and business banking results are weaker than expected. Rising interest rates help the spread upon which the banks make their money but also cut into economic activity.