A.M. Update

Good morning.

not surprisingly, we're still no closer to knowing what actually happened over the Ukraine (borderline Russian) skies yesterday, except of course to say a horrible tragedy. It seems there's not even clarity about what kind of ground to air missile system shot the flight down, much less who.

What we did find out is that the changes in character in the market continue to develop rapidly which is important because changes in character lead to changes in trends. As I mentioned last night, this is a market that has been, as CNBC referred to it yesterday in calling this a possible buying opportunity, a "Teflon " market, immune to the Arab Spring, numerous conflicts like Syria, etc. Yesterday was one of the first days I have actually seen the market as a whole rather than 1 specific sector, actually discount events in real time as markets were made to do, at least traditionally.

As mentioned in yesterday's wrap, the Dominant P/V relationship as well as the 3C positive divergences last night finally turned the market around 6:30-7 p.m. and it has recovered a good portion of yesterday's losses, this is not surprising given the amount of selling and I'm not talking about the percentage losses, but the TICK data extremes.

Today is also an options expiration Friday so a pin would not be unusual. Typically after 2 p.m. the maximum pain pin is released and we get some of the best data for the week ahead. So our IWM positive divegrence is still on the table.

Gold came down steadily since about noon yesterday, USO/oil looks set to come down as we suspected in the USO trade set up from Monday so we'll be looking at those today as well.