The Home Depot thing is really not new news, ... Is it surprising that a retailer had a bad holiday season? Not really. The market is actually doing OK today.

Maybe there will be some anticipation that this might be the last bit of bad news that is going to come out, and we can look forward from here.

But given all the negatives, investors should also consider the positive side. The market is discounting the bad news. We know the economy is terrible and corporate profits in trouble. With that kind of a backdrop, that's when we get a snap-back rally. Investors need to be on the look out for it.

Today's drop is a follow-through on more bad news. Also, the developments on Iraq and deflationary concerns in the economy remain in the background.

It's going to start bad but the key is how the market finishes. You've haven't really had any good earnings reports just yet and after the big run-up, you're going to have a lot of people questioning whether or not there is valid, fundamental support for that run.