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The market closed with another structure that generally favors buying scenarios, especially with today’s opening above the value area. Despite the recent drop, much of that move is likely to be repaired during the RTH session, and the market has already shown absorption near the prior session’s lows.

The Fed cut rates by 25 bps, as expected, and announced $40B in Treasury bill purchases over the next 30 days, boosting sentiment. The regime has shifted back to risk-on, suggesting traders may again look to buy dips, though caution is warranted given headline risk and earnings catalysts, for example, Oracle’s results triggered a sharp intraday selloff.

Technically, the market has moved back into value, implying rotational behavior until we can trade back above it. Still, monitor for any shift that provides a clean opportunity to buy this dip.

Also, to be noted is the outside day/bar close which may indicate a potential change in the market context from bullish to bearish or balanced. Though, as mentioned, the market exhibits a structure which would more likely favor buying scenarios in the RTH session as the macro regime still points to the upside with a dovish stance without any interest rate hikes reported for the next Year.
 

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