CAC 40 Drops Hard! Fed's New Tone Sparks Sharp Decline

anteontem

CAC 40 (French Index) on a 1-hour timeframe initiated a short trade using the Risological Trading Indicator. The sharp decline aligns with fundamental market dynamics influenced by the Federal Reserve's policy stance.

Trade Highlights:

Entry: Short position initiated based on bearish sentiment.
Current Trend: Sharp downward movement observed.

Reasons for Decline:

• At 8:15 AM, the December futures contract for the CAC 40 fell 110.5 points, settling at 7277.5 points, indicating a 1%+ decline at the open.
  
• The Federal Reserve cut its key interest rates for the third time this year, reducing them to a range of 4.25% to 4.50%.
  
• Fed Chair Jerome Powell signaled a "new phase" of monetary policy, characterized by a slower pace of rate cuts, contrary to market expectations.
  
• Updated projections show only two rate cuts next year, compared to the four previously anticipated by investors, fueling bearish momentum.