Week Sept 3-7

S&P 500: 1453.55 dropped 1.4% this week

The market still doesn't really know what to do. One day some bad news about the economy comes out, the market views it as good sign because there is more evidence that the Fed is going to cut rate. The next day some more bad news come out, the market treats it as a bad sign and the stock market tanked. I believe that from now till Sept 18th, the market would stay somewhat flat and investors would wait till the Fed's decision and act accordingly. Unemployment rate is still 4.6%; people are still making money, they are just deferring the spending. Stocks are still only 7% off historic high; people can't really say that the US is heading to a recession.