Equity markets cheered on Thursday when the PPI report was softer than expected. The report renewed hope that peak inflation was past and the FOMC would soon reach the peak of interest rates. The risk for the market is that easing fear may lead to an economic acceleration and an acceleration of inflation. In that scenario, the Fed will resume interest rate hikes before the end of the year.

Today's will be all about earnings. The peak of Q1 reporting begins today with reports from most of the big banks and a few other critical names. By the end of the day, the market will have a grasp on what to expect from the rest of the season and the takeaways may not be bullish. The S&P 500 is at a critical level, near 4,150; if it can't move higher tomorrow, the odds are high the index will remain range bound through the end of the season.