Following Jerome Powell's FOMC announcement, traders are adopting a bearish short-term outlook, utilizing July put options to position for further declines. The focus remains on the potential formation of a $105,000 bottom and escalating Middle East tensions as key market drivers. There is a consensus that changes by Trump to the Federal Reserve will not result in immediate rate cuts. Traders are holding negative delta positions for July while planning to increase positive delta for the fourth quarter, anticipating the current bearish wave to conclude near the $105,000 level. The escalation in the Middle East is seen as a primary market driver, with some investors buying put options ahead of potential U.S. involvement in Iran tensions. Powell's term ending on May 26 means Trump cannot secure immediate rate relief, leading to expectations of prolonged unchanged rates.