Historically, initial rate cuts are followed by an average 2% immediate decline before seeing upside in the intermediate term. Today, after Fed Powell announced a 25bp cut, the S&P 500 (SPX) went down nearly -1.3%, but recovered a bit and ended the day down -1.09%. Every sector was down across the board with Consumer Staples, Info. Tech., and Materials hit the hardest. The overbought condition of the market, combined with an initial rate cut and negative rhetoric between the U.S. and China could all act as catalysts for the temporary pullback we have been suggesting

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