"In the options market, on the individual name level, the implied earnings move … the expectation of the move the day after the earnings release is about as low across the board as it's been in about a couple of years," Emanuel said.
"That's not confined to any one sector or any specific thing," he added. "That just builds on the fact that implied volatility is pretty low in general and the whole idea of rotation. People are confused so you're having this correction that's coming more as a matter of confusion rather than a market selloff."
Some of what is confusing investors is the state of the economy and whether the weak December jobs report indicated something worse or was a once-off phenomena, Emanuel said. The Fed's tapering of its quantitative easing is a concern, as is the uncertainty that comes with change at the top when Janet Yellen takes over for Fed Chairman Ben Bernanke at the end of the month.
Gina Martin Adams, institutional equity strategist at Wells Fargo Securities, said the Fed-related risk to stocks would be if interest rates were to rise too quickly. Rates have moved higher but have been holding below 3 percent since the Fed announced in December that it would taper.
The 10-year Treasury note finished the week with a yield of 2.82 percent.
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"We've positioned staples, utilities and telecom as underweight," Adams said. "I think it will be tough for those sectors to outperform" in a higher rate environment.
She also expects the market to pay close attention to earnings this week.
"The trouble is balancing what could be a relatively dicey fourth quarter with ... some commentary that supports a better future," Adams said.
Besides earnings, traders will be watching headlines from the World Economic Forum in Davos, Switzerland, as world leaders and business leaders gather starting Tuesday.
"That probably will provide some positive sentiment on the economic outlook," Adams said. "Based on what Davos looked like last year, it will be a cheerleading event for economic growth."
It used to be more gloomy, she added, but the market could be heartened with positive comments about the economy at a time when the growth outlook is unclear.
(Read more: Here's where we stand on earnings)
China too has been a point of concern in the global economy, and it will be in the news in the coming week, when it releases important economic data on GDP, retail sales and industrial production Monday.
"If it does come in weak, it's going to support this whole thesis that China's just hobbling along right now, and it will put more pressure on the Australia dollar," said Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management. Weak data would push the Australian dollar to fresh multiyear lows, he added.
The U.S. dollar is in a holding pattern, according to Schlossberg.
"The dollar is in a bit of a funk," he said. "It's caught in range trading right now because the market is very unclear on the true direction of the U.S. economy."
Fourth-quarter GDP is now tracking at about 3.5 percent after third-quarter growth of 4.1 percent. But it's unclear whether the momentum has carried into the first quarter, and there is little data in the coming week.