Dear Reader,

This week’s action is all about the Fed.

Interest rates are definitely coming down this week. The only question is by how much.

Most market-watchers are predicting a 0.25% rather than a 0.50% cut.

But there’s no telling what the Fed might do.

What is clear is that this is the first of many cuts. So whether we get a quarter point now and half a point next month – or vice versa – is irrelevant.

The important thing to note is that this is happening amidst two big seasonal trends…

First, as I noted last week, September’s seasonal bearishness is on the way out. I don’t expect it to last much longer.

Second, we’re heading into the historically bullish election cycle.

Throw in a series of rate cuts before the end of the year, and our target of 580 might be in the rearview mirror sooner rather than later.

That’s where we begin today’s Five Points update – click below to get started now…

Good trading,

Tom Gentile
America’s Pattern Trader