Yes, you are permitted to make a contribution to your own traditional IRA based on your spouse's compensation from self-employment. Your spouse can also make a regular contribution to a traditional IRA. (If your spouse makes one, to avoid confusion it's best that it be made to an IRA different from the SEP-IRA.) Whether or not either of these traditional IRA contributions would be deductible depends on your Modified AGI for the purpose.
The sum of the SEP contribution, the regular traditional IRA contributions and the deductible portion of self-employment taxes is not permitted to exceed your spouse's net profit from self employment (absent any other compensation).
