diff --git a/.gitignore b/.gitignore
index f3396cc..09be2a2 100644
--- a/.gitignore
+++ b/.gitignore
@@ -10,3 +10,4 @@ share/
 *.egg-info
 MANIFEST
 dist/
+.idea
diff --git a/cachet_url_monitor/configuration.py b/cachet_url_monitor/configuration.py
index 54a571a..ee6f008 100644
--- a/cachet_url_monitor/configuration.py
+++ b/cachet_url_monitor/configuration.py
@@ -1,22 +1,23 @@
 #!/usr/bin/env python
 import abc
+import cachet_url_monitor.status
 import logging
 import re
 import requests
 import time
 from yaml import load
 
-
 # This is the mandatory fields that must be in the configuration file in this
 # same exact structure.
 configuration_mandatory_fields = {
-        'endpoint': ['url', 'method', 'timeout', 'expectation'],
-        'cachet': ['api_url', 'token', 'component_id'],
-        'frequency': []}
+    'endpoint': ['url', 'method', 'timeout', 'expectation'],
+    'cachet': ['api_url', 'token', 'component_id'],
+    'frequency': []}
 
 
 class ConfigurationValidationError(Exception):
     """Exception raised when there's a validation error."""
+
     def __init__(self, value):
         self.value = value
 
@@ -24,28 +25,62 @@ class ConfigurationValidationError(Exception):
         return repr(self.value)
 
 
+class ComponentNonexistentError(Exception):
+    """Exception raised when the component does not exist."""
+
+    def __init__(self, component_id):
+        self.component_id = component_id
+
+    def __str__(self):
+        return repr('Component with id [%d] does not exist.' % (self.component_id,))
+
+
 class Configuration(object):
     """Represents a configuration file, but it also includes the functionality
     of assessing the API and pushing the results to cachet.
     """
+
     def __init__(self, config_file):
-        #TODO(mtakaki#1|2016-04-28): Accept overriding settings using environment
+        # TODO(mtakaki#1|2016-04-28): Accept overriding settings using environment
         # variables so we have a more docker-friendly approach.
         self.logger = logging.getLogger('cachet_url_monitor.configuration.Configuration')
         self.config_file = config_file
         self.data = load(file(self.config_file, 'r'))
 
+        # We need to validate the configuration is correct and then validate the component actually exists.
         self.validate()
+        self.headers = {'X-Cachet-Token': self.data['cachet']['token']}
+        self.status = self.get_current_status(self.data['cachet']['component_id'])
 
         self.logger.info('Monitoring URL: %s %s' %
-            (self.data['endpoint']['method'], self.data['endpoint']['url']))
+                         (self.data['endpoint']['method'], self.data['endpoint']['url']))
         self.expectations = [Expectaction.create(expectation) for expectation
-                in self.data['endpoint']['expectation']]
+                             in self.data['endpoint']['expectation']]
         for expectation in self.expectations:
             self.logger.info('Registered expectation: %s' % (expectation,))
-        self.headers = {'X-Cachet-Token': self.data['cachet']['token']}
+
+    def get_current_status(self, component_id):
+        get_status_request = requests.get(
+            '%s/components/%d' % (self.data['cachet']['api_url'], self.data['cachet']['component_id']),
+            headers=self.headers)
+
+        if get_status_request.ok:
+            # The component exists.
+            return get_status_request.json()['data']['status']
+        else:
+            raise ComponentNonexistentError(component_id)
+
+    def is_create_incident(self):
+        """Will verify if the configuration is set to create incidents or not.
+        :return True if the configuration is set to create incidents or False it otherwise.
+        """
+        return 'create_incident' in self.data['cachet'] and self.data['cachet']['create_incident']
 
     def validate(self):
+        """Validates the configuration by verifying the mandatory fields are
+        present and in the correct format. If the validation fails, a
+        ConfigurationValidationError is raised. Otherwise nothing will happen.
+        """
         configuration_errors = []
         for key, sub_entries in configuration_mandatory_fields.iteritems():
             if key not in self.data:
@@ -56,99 +91,150 @@ class Configuration(object):
                     configuration_errors.append('%s.%s' % (key, sub_key))
 
         if ('endpoint' in self.data and 'expectation' in
-                self.data['endpoint']):
+            self.data['endpoint']):
             if (not isinstance(self.data['endpoint']['expectation'], list) or
-                (isinstance(self.data['endpoint']['expectation'], list) and
-                len(self.data['endpoint']['expectation']) == 0)):
+                    (isinstance(self.data['endpoint']['expectation'], list) and
+                             len(self.data['endpoint']['expectation']) == 0)):
                 configuration_errors.append('endpoint.expectation')
 
         if len(configuration_errors) > 0:
-            raise ConfigurationValidationError(('Config file [%s] failed '
-                'validation. Missing keys: %s') % (self.config_file,
-                ', '.join(configuration_errors)))
+            raise ConfigurationValidationError(
+                'Config file [%s] failed validation. Missing keys: %s' % (self.config_file,
+                                                                          ', '.join(configuration_errors)))
 
     def evaluate(self):
         """Sends the request to the URL set in the configuration and executes
         each one of the expectations, one by one. The status will be updated
         according to the expectation results.
         """
+        if hasattr(self, 'status'):
+            # Keeping track of the previous status.
+            self.previous_status = self.status
+
         try:
             self.request = requests.request(self.data['endpoint']['method'],
-                    self.data['endpoint']['url'],
-                    timeout=self.data['endpoint']['timeout'])
+                                            self.data['endpoint']['url'],
+                                            timeout=self.data['endpoint']['timeout'])
             self.current_timestamp = int(time.time())
         except requests.ConnectionError:
-            self.logger.warning('The URL is unreachable: %s %s' %
-                    (self.data['endpoint']['method'],
-                        self.data['endpoint']['url']))
-            self.status = 3
+            self.message = 'The URL is unreachable: %s %s' % (
+                self.data['endpoint']['method'], self.data['endpoint']['url'])
+            self.logger.warning(self.message)
+            self.status = cachet_url_monitor.status.COMPONENT_STATUS_PARTIAL_OUTAGE
             return
         except requests.HTTPError:
-            self.logger.exception('Unexpected HTTP response')
-            self.status = 3
+            self.message = 'Unexpected HTTP response'
+            self.logger.exception(self.message)
+            self.status = cachet_url_monitor.status.COMPONENT_STATUS_PARTIAL_OUTAGE
             return
         except requests.Timeout:
-            self.logger.warning('Request timed out')
-            self.status = 3
+            self.message = 'Request timed out'
+            self.logger.warning(self.message)
+            self.status = cachet_url_monitor.status.COMPONENT_STATUS_PERFORMANCE_ISSUES
             return
 
         # We initially assume the API is healthy.
-        self.status = 1
+        self.status = cachet_url_monitor.status.COMPONENT_STATUS_OPERATIONAL
+        self.message = ''
         for expectation in self.expectations:
             status = expectation.get_status(self.request)
 
             # The greater the status is, the worse the state of the API is.
             if status > self.status:
                 self.status = status
+                self.message = expectation.get_message(self.request)
 
     def push_status(self):
+        """Pushes the status of the component to the cachet server. It will update the component
+        status based on the previous call to evaluate().
+        """
         params = {'id': self.data['cachet']['component_id'], 'status':
-                self.status}
+            self.status}
         component_request = requests.put('%s/components/%d' %
-                (self.data['cachet']['api_url'],
-                self.data['cachet']['component_id']),
-                params=params, headers=self.headers)
+                                         (self.data['cachet']['api_url'],
+                                          self.data['cachet']['component_id']),
+                                         params=params, headers=self.headers)
         if component_request.ok:
             # Successful update
             self.logger.info('Component update: status [%d]' % (self.status,))
         else:
             # Failed to update the API status
             self.logger.warning('Component update failed with status [%d]: API'
-                    ' status: [%d]' % (component_request.status_code, self.status))
+                                ' status: [%d]' % (component_request.status_code, self.status))
 
     def push_metrics(self):
+        """Pushes the total amount of seconds the request took to get a response from the URL.
+        It only will send a request if the metric id was set in the configuration.
+        """
         if 'metric_id' in self.data['cachet'] and hasattr(self, 'request'):
             params = {'id': self.data['cachet']['metric_id'], 'value':
-                    self.request.elapsed.total_seconds(), 'timestamp':
-                    self.current_timestamp}
+                self.request.elapsed.total_seconds(), 'timestamp':
+                          self.current_timestamp}
             metrics_request = requests.post('%s/metrics/%d/points' %
-                    (self.data['cachet']['api_url'],
-                    self.data['cachet']['metric_id']), params=params,
-                    headers=self.headers)
+                                            (self.data['cachet']['api_url'],
+                                             self.data['cachet']['metric_id']), params=params,
+                                            headers=self.headers)
 
             if metrics_request.ok:
                 # Successful metrics upload
                 self.logger.info('Metric uploaded: %.6f seconds' %
-                        (self.request.elapsed.total_seconds(),))
+                                 (self.request.elapsed.total_seconds(),))
             else:
                 self.logger.warning('Metric upload failed with status [%d]' %
-                        (metrics_request.status_code,))
+                                    (metrics_request.status_code,))
+
+    def push_incident(self):
+        if hasattr(self, 'incident_id') and self.status == 1:
+            # If the incident already exists, it means it's unhealthy. We only update it when it becomes healthy again.
+            params = {'status': 4, 'visible': 1, 'component_id': self.data['cachet']['component_id'],
+                      'component_status': self.status, 'notify': True}
+
+            incident_request = requests.put('%s/incidents/%d' % (self.data['cachet']['api_url'], self.incident_id),
+                                            params=params, headers=self.headers)
+            if incident_request.ok:
+                # Successful metrics upload
+                self.logger.info(
+                    'Incident updated, API healthy again: component status [%d], message: "%s"' % (
+                        self.status, self.message))
+                del self.incident_id
+            else:
+                self.logger.warning(
+                    'Incident update failed with status [%d], message: "%s"' % (
+                        incident_request.status_code, self.message))
+        elif not hasattr(self, 'incident_id') and self.status != 1:
+            # This is the first time the incident is being created.
+            params = {'name': 'URL unavailable', 'message': self.message, 'status': 1, 'visible': 1,
+                      'component_id': self.data['cachet']['component_id'], 'component_status': self.status,
+                      'notify': True}
+            incident_request = requests.post('%s/incidents' % (self.data['cachet']['api_url'],), params=params,
+                                             headers=self.headers)
+            if incident_request.ok:
+                # Successful incident upload.
+                self.incident_id = incident_request.json()['data']['id']
+                self.logger.info(
+                    'Incident uploaded, API unhealthy: component status [%d], message: "%s"' % (
+                        self.status, self.message))
+            else:
+                self.logger.warning(
+                    'Incident upload failed with status [%d], message: "%s"' % (
+                        incident_request.status_code, self.message))
 
 
 class Expectaction(object):
     """Base class for URL result expectations. Any new excpectation should extend
     this class and the name added to create() method.
     """
+
     @staticmethod
     def create(configuration):
         """Creates a list of expectations based on the configuration types
         list.
         """
         expectations = {
-                'HTTP_STATUS': HttpStatus,
-                'LATENCY': Latency,
-                'REGEX': Regex
-                }
+            'HTTP_STATUS': HttpStatus,
+            'LATENCY': Latency,
+            'REGEX': Regex
+        }
         return expectations.get(configuration['type'])(configuration)
 
     @abc.abstractmethod
@@ -168,9 +254,9 @@ class HttpStatus(Expectaction):
 
     def get_status(self, response):
         if response.status_code == self.status:
-            return 1
+            return cachet_url_monitor.status.COMPONENT_STATUS_OPERATIONAL
         else:
-            return 3
+            return cachet_url_monitor.status.COMPONENT_STATUS_PARTIAL_OUTAGE
 
     def get_message(self, response):
         return 'Unexpected HTTP status (%s)' % (response.status_code,)
@@ -185,27 +271,27 @@ class Latency(Expectaction):
 
     def get_status(self, response):
         if response.elapsed.total_seconds() <= self.threshold:
-            return 1
+            return cachet_url_monitor.status.COMPONENT_STATUS_OPERATIONAL
         else:
-            return 2
+            return cachet_url_monitor.status.COMPONENT_STATUS_PERFORMANCE_ISSUES
 
     def get_message(self, response):
-        return 'Latency above threshold: %.4f' % (response.elapsed.total_seconds(),)
+        return 'Latency above threshold: %.4f seconds' % (response.elapsed.total_seconds(),)
 
     def __str__(self):
-        return repr('Latency threshold: %.4f' % (self.threshold,))
+        return repr('Latency threshold: %.4f seconds' % (self.threshold,))
 
 
 class Regex(Expectaction):
     def __init__(self, configuration):
         self.regex_string = configuration['regex']
-        self.regex = re.compile(configuration['regex'])
+        self.regex = re.compile(configuration['regex'], re.UNICODE + re.DOTALL)
 
     def get_status(self, response):
         if self.regex.match(response.text):
-            return 1
+            return cachet_url_monitor.status.COMPONENT_STATUS_OPERATIONAL
         else:
-            return 3
+            return cachet_url_monitor.status.COMPONENT_STATUS_PARTIAL_OUTAGE
 
     def get_message(self, response):
         return 'Regex did not match anything in the body'
diff --git a/cachet_url_monitor/scheduler.py b/cachet_url_monitor/scheduler.py
index 7fae92c..37c6bb1 100644
--- a/cachet_url_monitor/scheduler.py
+++ b/cachet_url_monitor/scheduler.py
@@ -10,6 +10,7 @@ class Agent(object):
     """Monitor agent that will be constantly verifying if the URL is healthy
     and updating the component.
     """
+
     def __init__(self, configuration):
         self.configuration = configuration
 
@@ -18,7 +19,6 @@ class Agent(object):
         cachet server.
         """
         self.configuration.evaluate()
-        self.configuration.push_status()
         self.configuration.push_metrics()
 
     def start(self):
@@ -26,11 +26,34 @@ class Agent(object):
         schedule.every(self.configuration.data['frequency']).seconds.do(self.execute)
 
 
+class UpdateStatusAgent(Agent):
+    def __init__(self, configuration):
+        super(UpdateStatusAgent, self).__init__(configuration)
+
+    def execute(self):
+        super(UpdateStatusAgent, self).execute()
+        self.configuration.push_status()
+
+
+class CreateIncidentAgent(Agent):
+    def __init__(self, configuration):
+        super(CreateIncidentAgent, self).__init__(configuration)
+
+    def execute(self):
+        super(CreateIncidentAgent, self).execute()
+        self.configuration.push_incident()
+
+
 class Scheduler(object):
     def __init__(self, config_file):
         self.logger = logging.getLogger('cachet_url_monitor.scheduler.Scheduler')
         self.configuration = Configuration(config_file)
-        self.agent = Agent(self.configuration)
+
+        if self.configuration.is_create_incident():
+            self.agent = CreateIncidentAgent(self.configuration)
+        else:
+            self.agent = UpdateStatusAgent(self.configuration)
+
         self.stop = False
 
     def start(self):
diff --git a/cachet_url_monitor/status.py b/cachet_url_monitor/status.py
new file mode 100644
index 0000000..66564de
--- /dev/null
+++ b/cachet_url_monitor/status.py
@@ -0,0 +1,10 @@
+#!/usr/bin/env python
+
+COMPONENT_STATUS_OPERATIONAL = 1
+COMPONENT_STATUS_PERFORMANCE_ISSUES = 2
+COMPONENT_STATUS_PARTIAL_OUTAGE = 3
+COMPONENT_STATUS_MAJOR_OUTAGE = 4
+
+COMPONENT_STATUSES = [COMPONENT_STATUS_OPERATIONAL,
+    COMPONENT_STATUS_PERFORMANCE_ISSUES, COMPONENT_STATUS_PARTIAL_OUTAGE,
+    COMPONENT_STATUS_MAJOR_OUTAGE]
diff --git a/config.yml b/config.yml
index 537d4d2..5ba9817 100644
--- a/config.yml
+++ b/config.yml
@@ -8,10 +8,11 @@ endpoint:
     - type: LATENCY
       threshold: 1
     - type: REGEX
-      regex: '.*<body>.*'
+      regex: '.*(<body).*'
 cachet:
   api_url: https://demo.cachethq.io/api/v1
   token: my_token
   component_id: 1
   #metric_id: 1
+  create_incident: true
 frequency: 30
diff --git a/tests/test_configuration.py b/tests/test_configuration.py
index 39515ef..eb8308c 100644
--- a/tests/test_configuration.py
+++ b/tests/test_configuration.py
@@ -1,19 +1,33 @@
 #!/usr/bin/env python
-import mock
-import unittest
 import sys
-from requests import ConnectionError,HTTPError,Timeout
+import unittest
+
+import cachet_url_monitor.status
+import mock
+from requests import ConnectionError, HTTPError, Timeout
+
 sys.modules['requests'] = mock.Mock()
 sys.modules['logging'] = mock.Mock()
 from cachet_url_monitor.configuration import Configuration
 
+
 class ConfigurationTest(unittest.TestCase):
     def setUp(self):
         def getLogger(name):
             self.mock_logger = mock.Mock()
             return self.mock_logger
+
         sys.modules['logging'].getLogger = getLogger
 
+        def get(url, headers):
+            get_return = mock.Mock()
+            get_return.ok = True
+            get_return.json = mock.Mock()
+            get_return.json.return_value = {'data': {'status': 1}}
+            return get_return
+
+        sys.modules['requests'].get = get
+
         self.configuration = Configuration('config.yml')
         sys.modules['requests'].Timeout = Timeout
         sys.modules['requests'].ConnectionError = ConnectionError
@@ -26,6 +40,7 @@ class ConfigurationTest(unittest.TestCase):
     def test_evaluate(self):
         def total_seconds():
             return 0.1
+
         def request(method, url, timeout=None):
             response = mock.Mock()
             response.status_code = 200
@@ -37,11 +52,12 @@ class ConfigurationTest(unittest.TestCase):
         sys.modules['requests'].request = request
         self.configuration.evaluate()
 
-        assert self.configuration.status == 1
+        assert self.configuration.status == cachet_url_monitor.status.COMPONENT_STATUS_OPERATIONAL
 
     def test_evaluate_with_failure(self):
         def total_seconds():
             return 0.1
+
         def request(method, url, timeout=None):
             response = mock.Mock()
             # We are expecting a 200 response, so this will fail the expectation.
@@ -54,7 +70,7 @@ class ConfigurationTest(unittest.TestCase):
         sys.modules['requests'].request = request
         self.configuration.evaluate()
 
-        assert self.configuration.status == 3
+        assert self.configuration.status == cachet_url_monitor.status.COMPONENT_STATUS_PARTIAL_OUTAGE
 
     def test_evaluate_with_timeout(self):
         def request(method, url, timeout=None):
@@ -67,7 +83,7 @@ class ConfigurationTest(unittest.TestCase):
         sys.modules['requests'].request = request
         self.configuration.evaluate()
 
-        assert self.configuration.status == 3
+        assert self.configuration.status == cachet_url_monitor.status.COMPONENT_STATUS_PERFORMANCE_ISSUES
         self.mock_logger.warning.assert_called_with('Request timed out')
 
     def test_evaluate_with_connection_error(self):
@@ -83,7 +99,7 @@ class ConfigurationTest(unittest.TestCase):
 
         assert self.configuration.status == 3
         self.mock_logger.warning.assert_called_with(('The URL is '
-            'unreachable: GET http://localhost:8080/swagger'))
+                                                     'unreachable: GET http://localhost:8080/swagger'))
 
     def test_evaluate_with_http_error(self):
         def request(method, url, timeout=None):
@@ -98,7 +114,7 @@ class ConfigurationTest(unittest.TestCase):
 
         assert self.configuration.status == 3
         self.mock_logger.exception.assert_called_with(('Unexpected HTTP '
-            'response'))
+                                                       'response'))
 
     def test_push_status(self):
         def put(url, params=None, headers=None):
diff --git a/tests/test_expectation.py b/tests/test_expectation.py
index fa96ed7..071b75f 100644
--- a/tests/test_expectation.py
+++ b/tests/test_expectation.py
@@ -1,9 +1,10 @@
 #!/usr/bin/env python
+import unittest
+
 import mock
 import re
-import unittest
-from cachet_url_monitor.configuration import Expectaction,Latency
-from cachet_url_monitor.configuration import HttpStatus,Regex
+from cachet_url_monitor.configuration import HttpStatus, Regex
+from cachet_url_monitor.configuration import Latency
 
 
 class LatencyTest(unittest.TestCase):
@@ -16,6 +17,7 @@ class LatencyTest(unittest.TestCase):
     def test_get_status_healthy(self):
         def total_seconds():
             return 0.1
+
         request = mock.Mock()
         elapsed = mock.Mock()
         request.elapsed = elapsed
@@ -26,6 +28,7 @@ class LatencyTest(unittest.TestCase):
     def test_get_status_unhealthy(self):
         def total_seconds():
             return 2
+
         request = mock.Mock()
         elapsed = mock.Mock()
         request.elapsed = elapsed
@@ -36,13 +39,14 @@ class LatencyTest(unittest.TestCase):
     def test_get_message(self):
         def total_seconds():
             return 0.1
+
         request = mock.Mock()
         elapsed = mock.Mock()
         request.elapsed = elapsed
         elapsed.total_seconds = total_seconds
 
         assert self.expectation.get_message(request) == ('Latency above '
-        'threshold: 0.1000')
+                                                         'threshold: 0.1000 seconds')
 
 
 class HttpStatusTest(unittest.TestCase):
@@ -69,7 +73,7 @@ class HttpStatusTest(unittest.TestCase):
         request.status_code = 400
 
         assert self.expectation.get_message(request) == ('Unexpected HTTP '
-        'status (400)')
+                                                         'status (400)')
 
 
 class RegexTest(unittest.TestCase):
@@ -77,11 +81,11 @@ class RegexTest(unittest.TestCase):
         self.expectation = Regex({'type': 'REGEX', 'regex': '.*(find stuff).*'})
 
     def test_init(self):
-        assert self.expectation.regex == re.compile('.*(find stuff).*')
+        assert self.expectation.regex == re.compile('.*(find stuff).*', re.UNICODE + re.DOTALL)
 
     def test_get_status_healthy(self):
         request = mock.Mock()
-        request.text = 'We could find stuff in this body.'
+        request.text = 'We could find stuff\n in this body.'
 
         assert self.expectation.get_status(request) == 1
 
@@ -96,4 +100,4 @@ class RegexTest(unittest.TestCase):
         request.text = 'We will not find it here'
 
         assert self.expectation.get_message(request) == ('Regex did not match '
-        'anything in the body')
+                                                         'anything in the body')
diff --git a/tests/test_scheduler.py b/tests/test_scheduler.py
index 6f1bd56..30de4ce 100644
--- a/tests/test_scheduler.py
+++ b/tests/test_scheduler.py
@@ -1,10 +1,11 @@
 #!/usr/bin/env python
-import mock
-import unittest
 import sys
+import unittest
+
+import mock
+
 sys.modules['schedule'] = mock.Mock()
-sys.modules['cachet_url_monitor.configuration.Configuration'] = mock.Mock()
-from cachet_url_monitor.scheduler import Agent,Scheduler
+from cachet_url_monitor.scheduler import Agent, Scheduler
 
 
 class AgentTest(unittest.TestCase):
@@ -21,7 +22,7 @@ class AgentTest(unittest.TestCase):
         self.agent.execute()
 
         evaluate.assert_called_once()
-        push_status.assert_called_once()
+        push_status.assert_not_called()
 
     def test_start(self):
         every = sys.modules['schedule'].every
@@ -33,16 +34,24 @@ class AgentTest(unittest.TestCase):
 
 
 class SchedulerTest(unittest.TestCase):
-    def setUp(self):
-        self.mock_configuration = sys.modules[('cachet_url_monitor.configuration'
-            '.Configuration')]
+    @mock.patch('requests.get')
+    def setUp(self, mock_requests):
+        def get(url, headers):
+            get_return = mock.Mock()
+            get_return.ok = True
+            get_return.json = mock.Mock()
+            get_return.json.return_value = {'data': {'status': 1}}
+            return get_return
+
+        mock_requests.get = get
+
         self.scheduler = Scheduler('config.yml')
 
     def test_init(self):
         assert self.scheduler.stop == False
 
     def test_start(self):
-        #TODO(mtakaki|2016-05-01): We need a better way of testing this method.
+        # TODO(mtakaki|2016-05-01): We need a better way of testing this method.
         # Leaving it as a placeholder.
         self.scheduler.stop = True
         self.scheduler.start()