The Fed Did It Again

Or did he? We already knew there was going to be a rate cut. The question was for how much. Half a percentage point is what the markets wanted but as you saw the markets sold off towards the end. That's not exactly a good reaction to a measure that was supposed to help the economy and in turn the markets themselves.

I have noticed that since the markets topped recently, the volatility went up a lot and the markets had a delayed reaction to any positive Fed news. That could mean that the markets rally at some point tomorrow or that today's failed rally was it. I would have preferred that the markets didn't rally today and waited for tomorrow but we know what happened. On the other hand as of yesterday, the markets were already slightly overbought so this selloff was not a surprise. What we need at this point is positive earnings reports from the leading companies to save this market from any further selloff.