Then, there's China. I think a lot of the negative news about China's slowdown has been overblown and, in fact, a slowing, more stable, consistent China might actually better for the them and for the world economy. The next couple of data points will tell. Even the Chinese market last week tested support at 2000, bounced and closed the week out above.
I expect all of the economic reports this week — including Empire State manufacturing, industrial production, capacity utilization, CPI, housing starts, building permits will be stronger. On Wednesday, we will hear from the Federal Reserve and expect a further tightening of policy following their two-day meeting (this has been well circulated, no surprise here) as they continue tapering the stimulus. By doing so, the Fed will be delivering the message that the broader macro data points continue to move in the right direction.
Bottom line: Good news will be good news — and the market will respond accordingly.
(Read more: Think US natgas can threaten Russia? Think again)
—By Kenny Polcari
Kenny Polcari is director of NYSE floor operations at O'Neil Securities and a CNBC contributor, often appearing on "Power Lunch." Follow Kenny on Twitter @kennypolcari and visit him at kennypolcari.com.
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Disclosure: The market commentary is the opinion of the author and is based on decades of industry and market experience; however no guarantee is made or implied with respect to these opinions. This commentary is not nor is it intended to be relied upon as authoritative or taken in substitution for the exercise of judgment. The comments noted herein should not be construed as an offer to sell or the solicitation of an offer to buy or sell any financial product, or an official statement or endorsement of O'Neil Securities or its affiliates.