«I eat doves for breakfast.»
That was not the Fed meeting bulls were hoping for. In yet another hawkish feat, Jerome Powell downplayed talk of pausing rate hikes, suggesting the Fed still has a long way to go. Essentially he pulled out a shotgun and indiscriminately sent buckshot at all doves within range.
The market promptly plummeted, cracking $379 support on SPY. With that, we’re back below the 50-day and 9-day moving averages. $363.50 marks the next significant pivot, so that’s the downside target for those using support zones as their guide.
The wicked volatility is why it pays to have a plan going into an uncertain event like this. Savvy traders swinging short-term positions should have reduced exposure once the $379 support level gave way. Now we see just how far bears want to press their newfound advantage. I’ll be watching the 20-day moving average test this morning with interest.
Video Of The Day: How to Use Put Option as Insurance
Coach Noah explains what a Put Option is, how to and why you should use it as #insurance.
Chart of the Day: S&P 500 ($SPY)
Breaking $379 yesterday was the bearish tell.
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