Maybe it isn't too safe to jump into this market. Analysts are telling clients that many excellent stocks should be snatched up at what they regard as bargain prices. That may be true, but the time frame is the question. How long before the market bounces and I make money on these investments if I jump today? I am inclined to think we have hit the bottom, but we could wander sideways with days like today for some time before this market stabilizes. In fact, it seems likely to me that we won't see a clear direction higher or lower until after the FOMC meeting in a couple of weeks. It is hard to buy confidently with the Fed's actions a mystery.

SPX lost $30 to close at $1921. RUT traded down as well, closing at $1136, down $9. That marked a 1.5% decline for SPX, but only -0.8% for RUT. RUT is normally the "risk off" index. Should I be encouraged?

Trading volume also declined again today with 2.2 billion shares of the S&P 500 stocks trading. Trading on the NYSE declined 6% and volume dropped 13% on NASDAQ. Trading volume has been declining pretty steadily since August 24th. I find that encouraging; declining trading volume isn't a sign of traders in a panic and selling before the impending collapse. However, traders are concerned and at least somewhat fearful as indicated by the VIX moving up over two points today to 27.9%. The VIX spiked to over 53% on 8/24, but has declined since then. But a VIX level of 28% can't be ignored.

The jobs report contained mixed signals with a weak jobs number of 173k, but a lower unemployment rate of 5.1%. And the labor force participation rate stayed flat so this decline didn't just reflect people giving up and leaving the labor force. Will that lower unemployment rate push the Fed to move on interest rates?

The last couple of weeks have been stressful for traders. I hope you can put this all aside and enjoy a nice long holiday weekend. Labor Day is an important celebration. The American work ethic has formed the foundation of our prosperity, coupled with the freedom to take risk and compete. Relax and pat yourself on the back. You deserve it.