The Federal Reserve slashed interest rates by 50 BPS today and signaled for 2 additional cuts this year, followed by 4 in 2025. It marks the Fed’s first easing of monetary policy since 2020 and the termination of its most aggressive inflation-fighting campaign since the 1980s. Prior to this cut, rates were at a 23-year high since July 2023.
Anticipated fed cuts illustrated (cc: Yahoo Finance):
SPDR S&P 500 ETF Trust (SPY)
Index – USA
There wasn’t a clear reaction to the Fed rate decision, instead a lot of volatility and closing below VWAP. If you didn’t have a clear plan for this action prior to the decision, it’s best to wait and develop a clear plan.
- STOCK – ATR: 7.36
- STOCK – RSI daily: 57.82
- STOCK – Resistance: 564, 565, 566, 568.69
- STOCK – Support: 562, 560
