Equity markets fell hard on Tuesday, shedding more than 2.0% by the end of the day. The move may be a referendum on the election results, but there is more to the story as well. Not only were there a number of bad earnings reports from names like Disney, but the CPI index is due out today. The expectation for the CPI wasn't good, and there is a chance that it could come in hot and accelerate at a quicker pace than the market has priced in. Regardless, the data will be consistent with the Fed's outlook unless it falls by an unexpectedly sharp amount.

With earnings season winding down and the CPI behind us, the market will have nothing but economic data and day-to-day news to drive it, and that is a recipe for volatility. The next major economic reports are due out next week and include retail sales, the home builders index, key reads on manufacturing, and the Index of Leading Indicators. As it is, good news for the economy is bad news for inflation and interest rate hikes and may cap gains in the market.