Following the expected 25 basis point FOMC rate cuts, the market will experience a 'sell the news' event, characterized by an initial large wick up followed by a significant fall, potentially initiating a downtrend on higher time frames.
"I personally think that rate cuts have already been priced into the market and this is a buy the rumor sell the news event... And now we are probably going to get rate cuts in the next 30 minutes. And I think that there's going to be a very large wick up and then boom, we are going to fall down... So I think that this is going to be a sell the news event and I also think that this is a pretty solid time for price to kickstart a little downtrend on the higher time frames because we are due for one."
