Traders,

Stocks are reeling following yesterday’s Fed announcement amid fears that Jerome Powell and friends intend to drive the economy into the ditch. As usual, the Fed chair struck a hawkish tone. The monetary magicians will continue to slam on the breaks until inflation is good and dead. Got it?

Far more important than what was said was how the market reacted. ‘Tis always so. We closed lower, but this morning’s downside follow-through is the more concerning development. The Russell 2000 is slicing below the 50-day moving average, placing the daily chart in a definitive downtrend. Meanwhile, the S&P 500 is testing critical support at $390, and its chances to hold look slim. Given the technical deterioration, it’s probably a good time to dust off the bear playbook and remind yourself how to play defense.

Video Of The Day: Jedi Options: Stock Repair Strategy › How to manage a bad stock trade using options

In today’s Jedi Options, Coach Tyler explains how to manage a bad #stocktrade without further increasing cost and risk, and also reducing cost-basis using what is called a stock repair strategy using #options.

Chart of the Day: S&P 500 ($SPY)

$390 has been a crucial price zone for SPY. Short-term bulls won’t have a leg to stand on if it gives way.

Today’s line up

Traders Lounge 11 AM EST

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Cash Flow Condors Mastermind Group 7:00 PM EST

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The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.

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