IRAN UPDATE

So much for fundamental equity analysis as the markets fall on the news of a "nuclear breakthrough" by the Ahmadinejad and the Iranians. According to MEHR, the breakthrough will confirm Iranian status as a "nuclear country." I questioned a few times over the past several days when would "Iran" be back on the trading radar, however, I did not expect this kind of news.

Not sure what it all means, but I can say that the markets don't like it as they have gone straight down since the news was released at around 10:30.

Market internals have flipped to 2,300 more losers than winners and not surprisingly, just about all sectors are red. The worst of the groups are homies, oils, internets, retailers, biotechs, small caps and techs. Financials have also turned south but not quite as bad as most other sectors.

The SPX area of support looks to be the 1285/1290 level and the support on the daily pivot is at 129.3 on the SPY and 1290 on the SPX.