Yesterday’s session felt like the Western classic “High Noon,” but today could be the shootout at the O.K. Corral. The growth sector by Consumer Discretionary (XLY) was higher, but the rest of the market hid in the shadows.

Old Formula Falls Flat

Those big rectangles and boxes were green, but all the smaller rectangles and boxes were red. It wasn’t long ago that the swagger of the mega-cap could spark wider participation.

Suddenly, the broad rally thinned out fast.

Wait And See

Investor sentiment got less bullish and bearish, as investors weren’t sure how to feel about the market.

Fresh Guess

After the ADP Jobs report laid an egg, Wall Street analysts went back to sharpen their pencils, and now they see fewer jobs.

Today’s Session

Jobs Report:

• 142,000 vs consensus 161,000 (whisper 159,000)
• July revised -25,000 to 89,000
• June revised -61,000 to 118,000

Ironically, some are trying to say August was a sequential improvement from July after revision. They fail to consider two things:  A) August could be revised lower in the future and B) 142,000 isn’t a great number (118,000 private sector). 

The Street now is pricing a 50-bps rate cut.  I know that kind of cut is associated with recessions; that has nothing to do with the size of the cut but the timing.  Let’s hope the Fed isn’t too late this time around.