It's Showtime for the FED

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Our View

As we go into today's rate cut, it would be hard to say anything but bullish. It doesn't really matter if it's good or bad economic reports, the markets have and want to continue higher. 

However, there is one thing in the way of it and it's not the Fed — it's the second half of September, the Triple Witching and the ‘end of the quarter’ rebalance. 

Like I said yesterday, there is always an event. So, let's talk about the rate cut. I think there is a good chance it's a “sell the news” event, but I don't think it will be the end of the rally. What the ES needs to do now is have a drop, back-and-fill for a bit and then start marching higher again. 

I can't disagree with a lot of what the bears have to say and I agree that something bad can happen to the stock market, but one of the things the bears have left out of the equation is that little three-letter word: FED! 

It would be a big feather in the administration’s cap if going into the election the White House could say that inflation is over after 3 rate cuts.