My interpetation of the Fed rate cut on the market

The Fed did exactly what was expected and no one on the street knew what to make from it.

To gain some insight on the news, the market looked at the market reaction. When they saw the market starting to trend down, they assumed the news was bad so sold into it adding to the problem. When it came down to it, the traders were just behaving like sheep.

If they knew what the rate cut meant, the market would have instantly spiked down instead of the slow sell off we had today.