The CBOE Volatility Index (.VIX) is down .36 to 19.40 and might have found a floor around these levels despite today’s rebound in the major averages. With 15 minutes left to trade, the Dow Jones Industrial Average is up nearly 200 points. VIX, the market’s “fear gauge”, is not seeing a more significant decline as investors look ahead to potential catalysts for market volatility in the weeks to come. While trading is likely to be quiet tomorrow as many players leave early to enjoy the holiday weekend, economic data early (personal spending, manufacturing, consumer confidence) carries some market moving potential for Friday. More importantly, the historically volatile period of September through October begins Tuesday and kicks off with a busy economic calendar next week, including key payroll data on Friday. Meanwhile, actual volatility of the S&P 500 Index (20-day Statistical Volatility) is 22.6 percent, well above the current readings from the volatility index. In sum, since VIX tracks the expected volatility priced into S&P 500 Index options, the downside seems limited, as actual levels of market volatility remain high and investors look ahead to sources of event risk heading into the volatile months of September and October.