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Markets hit critical levels

Talking Numbers

The S&P 500 breaks above 1700 as a host of earnings come out this week. What's next for the market?

Two things big things are happening this week – Congress and the President will continue trying to come to an agreement before the October 17 debt ceiling deadline and a lot of companies will report earnings.

While many will be focused on what comes out of Washington, it may well be that earnings are going to be just as critical, if not more. But, even if earnings are important this week, that doesn't necessarily they will great.

(Read: Debt ceiling battle may overshadow earnings)

"Earnings are not likely to be spectacular right now," says Zachary Karabell, president of River Twice Research. While lackluster bottom line growth for companies would normally spell trouble for the markets, Karabell believes DC's dysfunction may end up not being not be the worst things for the markets.

"The effect of the shutdown will likely be that a lot of this will be given a bit of a pass," says Karabell. The relief at not plunging [into] some sort of economic abyss is sufficient to bolster what will otherwise be an unimpressive – though certainly not disastrous – earnings season."

(Read: Senate Leaders talk; GOP blames Obama for gridlock)

"We are not seeing strong earnings growth," agrees Andrew Busch, author and publisher of The Busch Update. "But, that's not what this market really was about. It's all about the Fed. It's all about [Federal Reserve Chair nominee] Janet Yellen. And, it's all about continuation of those super-easy monetary policies. That's really what continues to juice stocks."

So, what's next for the markets and what major levels is it currently trading near?

Watch the video above to see the rest of Karabell and Busch analyze the S&P 500 and what this week means for stocks as it nears important technical levels.

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