Stunned!
The market was stunned this morning by a 50-basis-point cut by the Fed that seemed to take everyone by surprise.
The markets had been trading higher before the Fed action, largely on Intel’s earnings and some positive conference-call action.
One thing to keep in mind for the rest of today’s trade, however, is that despite the level of “surprise” in this move, volatility has NOT been as much as would be expected.
S&Ps are trading at 1248, after making a spike high of 1270. We had see some good buying pre-Fed below 1245 and saw good support around 1247.
NASDAQ futures spiked up earlier to 1950, and are now trading at 1857. That kind of spike up and spike down made for some very happy local traders.
Keep in mind that ths kind of “surprise” may take the market some time to digest.