Terrorist victories in Iraq and worries over Iraq's oil production fueled big gains for crude oil and losses for equities.
Oil prices surged to nine-month highs on this news. The spike in oil sparked a sell-off in transportation stocks. The rest of the market was looking for an excuse to take some money off the table and Iraq is a convenient reason.
Stocks could see more weakness on Friday morning as markets react to headlines out of Iraq.
We are not adding new trades tonight. If the S&P 500 fails to hold the 1920 level then the next area of support is 1900.