Range bound...

The S&P500 seems to have formed a trading range between 1310 and 1380. If this is the case, look for a move south in the next few days, to see if support can be found around 1325.

Overall the markets seem to be in no man's land. 1406 will surely provide some resistance to the upside. And last week the bottom was set at 1275. A move above or below these key levels will determine where we go next.

Jobs report is up tomorrow... it may be what leads us lower so that 1325 can be tested.

Check the ticker for the latest...

0.25 or 0.50??

About an hour to go, and we'll know.

The bond markets are saying there's better than a 80% chance that it's 0.50

Typically, a cut would help the markets... but 1.25% in a week signals that something is seriously wrong with the economy... and that could give da bears a shot in the arm.

I'm still playing wait-and-see... it should be an interesting afternoon, to say the least.

The Hardest Thing

I think the hardest thing to do is to buy on weakness.

When the S&P500 broke through the critical 1490 in August, we saw 6 straight days of declines before we saw a bottom.

Today is the 6th straight day of declines, after the S&P500 broke through the critical 1406.

Today may or may not be the temporary bottom, but I'm a buyer.

Check the ticker for the latest...

What does fear smell like?

Ask any trader, and they'll tell you today reeks of it. Despite the 'emergency' rate cut by the Fed, look for a massive spike down today. How today closes will be crucial.

What should one do on a day like today?

Best bet today: sell the VIX. Volatility is going to spike today, but things will, eventually, settle down. Take advantage of leverage with options.

Look for 'good' companies that have been punished for no real reason and start averaging in. You're not going to pick the bottom. So might as well buy a little today.

Should be a great trading day for some ultra ETF's as well. Watch them closely.