Before the market opened, major indices were pointing lower by more than 1%, and oil was moving closer to a critical breakout level of $100.

The cause for the anger was an ultimatum from President Trump, over the weekend, that would have seen the obliteration of Iran’s energy infrastructure.

This morning, President Trump posted an update on “very good and productive” conversations for a complete and total resolution of hostilities, which flipped the script.

Detractors and shorts will call this a TACO situation after the DB Pressure Index, which measures the S&P 500, 10-year yield, Trump’s approval, and one-year inflation, reached its highest point of his second term (point).

But the fact of the matter is, all those metrics were excessive short-term moves. Investors should focus on fundamentals and would have been spying on an entry point.

Over Sold

The S&P 500's price-to-earnings drawdown was 15% coming into today’s session, but that doesn’t tell the complete story. 50% of the Russell 3000 came into the session down from their 52-week highs, and 20% from their 52-week lows.

On Sale

Coming into the session, seven sectors have endured valuation contractions. All, except for Materials, seem excessive to me.

The market ticked the 200-day moving average and moved lower.  This is a monumental hurdle, but once clear, we could be off to the races.