The Federal Reserve cut interest rates a quarter-point as expected, but uncertainty over further cuts is causing a mixed response. Two voting members preferred no cut and one preferred a half-point cut and the view for the remainder of the year is less dovish, which is making buyers cautious so far.
A press conference is coming up with Fed Chair Jerome Powell and the potential for more cuts will be the primary market focus. The likelihood is that Powell will use the phrase "data dependent" and state that the focus is on continuing the economic expansion. Holding some potential cuts as ammunition is not market unfriendly.
Market players have been leaning toward a negative response to the Fed and we'll see how things develop as Powell speaks, but this market seems to consistently find support fairly fast.
The Powell press conference is going to determine where the market is headed from here. Powell has a history of making comments viewed as unfriendly and it looks like that nervousness is seeping in as we wait.
Technically the S&P 500 still has plenty of room to the downside before support levels come into play. That combined with a fairly high level of bearishness already is likely to keep downside contained unless Powell makes some overtly hawkish comments.
This market has had dismal price action lately and it may need more downside before it can produce greater upside. The selling is picking up as I write as a "sell the news" reaction starts to gain momentum.