Caution is again the watch word on Wall Street ahead of Friday's closely followed jobs report.
"People are reluctant to do much of anything today except position themselves for Friday and digest yesterday's gains," says John Canally of LPL Financial in a Reuters interview.
On average, the Street expects the economy to have shed about 100,000 jobs overall in August. That hardly looks bullish but looks can be deceiving.
Maintaining Wednesday’s gains may be enough for the bulls to claim victory. “If we are able to hold through the day and hold on to (Wednesday's) gains that is a good sign," explains Peter Jankovskis of Oakbrook.
How should you position now?
Instant Insights with the Fast Money traders
I think we’re looking at a bottom at least for the near term and possibly for the long term, muses Steve Cortes of Veracruz. The trend started last week when we saw terrible housing data yet housing stocks rallied. It’s constructive price action. Also, the potential for so much M&A has to be making the shorts nervous; that too should buoy stocks.
It’s hard to define a market bottom but I'll know it when I see it, counters Guy Adami, and I don’t think I’ve seen it yet. If you’re a long-term investor I would not chase stocks here. However, if you’re a trader I’d stay long the S&P above 1080.