Yesterday, the Federal Reserve announced a 0.25% rate cut, its first move in months to ease monetary policy. The decision was widely anticipated, but markets welcomed the confirmation, with equities pushing higher into the close. The Fed noted that inflation has moderated but remains elevated, signaling it is prepared to adjust policy further if economic conditions warrant.
This rate cut provides additional support for risk assets, reinforcing the bullish backdrop we have been trading into. We continue to hold swing long positions across all major US indices and maintain a strong portfolio of individual stock longs.
S&P 500 (US500)
The S&P 500 closed above 6,620, extending its breakout and confirming bullish momentum. RSI is firm but not yet overbought, while the PPO remains bullish, showing widening separation. As long as the index holds above 6,420 support, we expect continuation higher toward the 6,700–6,750 target zone.
Nasdaq 100 (NAS100)
Tech remains the leader, with the Nasdaq climbing through 24,300 resistance and pushing toward 24,600. RSI near 65 still leaves upside room, and PPO confirms momentum strength. Support sits at 22,900, with any dips likely to be met by buyers.
Dow Jones (US30)
The Dow trades above 46,100 within a rising wedge pattern, continuing its steady advance. While wedge structures often suggest caution, the Fed’s rate cut and bullish momentum favor further upside. A clean breakout above 46,500 would likely trigger continuation toward 47,000+.
Russell 2000 (US2000)
Small caps surged through 2,420 resistance, highlighting broad market participation in the rally. RSI is trending higher, PPO is bullish, and support now rises to 2,355. The next resistance stands at 2,480, with momentum favoring continuation.
Outlook
The Fed’s rate cut adds fuel to the ongoing equity rally, strengthening the technical case for further upside. With all major indices breaking higher and breadth improving through small caps, the path of least resistance remains up.
We continue to hold our swing long positions in both indices and individual stocks, positioning for continuation of the bullish trend in the weeks ahead.
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