A .25% rate cut would have got us the spike and drop pattern, the .50% got us a huge short covering rocket ride. The SnP emini went up 27 points in about 15 seconds when the news hit. Two possible short covering rally targets, 1522 or 1540. No top is possible now until a full hour trades inside the 60 minute chart upper band. That may take all of Wednesday to play out so until the shorts are out this will continue. We are long from 1440-1450 areas looking for 1605. This .50% cut may take us out near 1540 as this is bad news for the markets and once this short covering is over it could tank hard and fast.
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