Fed Cuts 25bps - Market Update & Key Levels to Watch 📊

David Zimmerman

13d • Crypto Market Content

Hey everyone, wanted to share some important market developments from today's FOMC meeting:

The Fed Decision 🏛️

Powell delivered the expected 25 basis point cut ✅
More importantly, the dot plot came in more dovish than expected - this is what market participants were really looking for 👀
The forward path for rates appears to be trending lower, which is constructive for risk assets 📈

Market Reactions:

S&P 500 📊: Currently just filling gaps from the futures roll. No structural damage, but watch for follow-through.

NVIDIA 🔻: Down 3%+ at the trough today on news that China 🇨🇳 is not only canceling future orders but also existing orders for NVDA chips. Currently just filling the gap from yesterday's gap up - no structural damage.

⚠️ Crypto Correlation Alert: Bitcoin is trading more like NVIDIA than gold right now. This tech correlation is important to monitor.

Bitcoin 🟠:

Rejected at the key resistance level of 117.5 last night. This remains the critical level to break for continuation higher 🎯. Some volatility today on the Fed announcement, but that's expected on FOMC days.

Ethereum 🔷:

Similar story - volatility on the Fed announcement but holding structure for now.

Dollar (DXY) 💵:

This is a big one - the dollar broke below long-term trendline support dating back to 2011 just two days ago 📉. We're now retesting that broken support as resistance, and so far getting rejected. This is textbook technical action - former support becomes resistance.

🎯 Key Takeaway:

Despite the volatility, we're seeing relatively orderly market action post-Fed. The dovish tilt in the dot plot is what bulls wanted to see 🐂.

Watch those key levels mentioned above, especially BTC at 117.5 and whether the dollar can reclaim that long-term trendline.

Stay nimble out there! 💪

6:00

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