A.M. Update

There's not much going on overnight that's not going on almost every night such as heavy fighting in eastern Ukraine, there is the re-ignition of fighting in Gaza after an uneasy truce failed to hold, but these aren't really moving anything despite what talking heads would have you believe, Crude has made a pretty large decline as we saw last night, as we expected in our trade set up from last month for a long and then short USO/crude trade and seemingly on the back of US airstrikes in the Kurdish area of Iraq which was a guess back then when the trade idea was posted as being a catalyst to explain the larger negative divergences being seen at the time (in other words Wall St. already knew Obama would send in help). Interestingly I read that dropping crude prices were a result of geo-political tensions, I'd think they'd move in the opposite direction...

In any case the F_O_M_C minutes at 2 p.m. are the event of the day/week with Yellen at Jackson Hole Friday at 10 a.m. The Bank of England's minutes revealed for the first time in 3 years there was a split in the vote with two members looking for a rate hike to bring rates to +.75%,

The Global markets have quieted down with Shangjai -0.23%, Hang Seng +0.15% and China will have HSBC Flash PMI readings out tomorrow. The Nikkei +0.03% with Europe in decline, FTSE -0.47%, DAX -.74% and the CAC-40 -.70%.

We just gapped down. Looking at the Index futures, I think after today's knee jerk minutes reaction which "could last a few days, but usually is a few hours, we've pretty much reached the pivot area with the IWM severely underperforming the target areas, only breaking above the very minimum target.

I suspect we'll be preparing for a more important leg and one down. We still should expect some reversal process, but I'd like to be ready in case it's a sharper one than usual, I can imagine that in this scenario where most all of the action that had to be undertaken was undertaken starting the first day of the bounce.