Muted trading this morning as traders prepare for the long weekend ahead.

Yesterday's selloff allowed bears to do some short covering which evidenced itself in the late afternoon bounce in the last hour of trading.

Seasonality has been a bust this season defying all of the odds.

News that nonfarm payrolls for June fell by a sharper-than-expected 125,000, but the unemployment rate retreated more than expected to 9.5%. The report has been the focal point of market participants this morning, primarily due to the signals and implications it carries for the broader economy, but also because there hasn’t been much other news of consequence. The mixed report leaves traders feeling the same way.

Expect volume to dry up the rest of the day as local traders begin to slip away for the weekend.

Volatility can pick up but it is not indicative of any long lasting trends.

Make sure your hedges are in place.

We will exit the hedges and take a profit around 975 on the SP500 or remove them to allow longer term positions to gain profits around 1150 whichever comes first.

Enjoy the 4th...anything of import today and I will add to this message.