«Today’s Core PCE Inflation reading holds near a 40-year high.»

Traders,

What stocks require is a bullish shock – something good to cling to. Unfortunately, it didn’t arrive this morning. Instead, the core personal consumption expenditures, excluding food and energy, rose 4.7% from a year ago. On the bright side, it was marginally less than expected. On the dark side, it still showed inflation holding tightly to its highest levels since 1982.

Tack on the fact that the technicals on the S&P 500 remain terrible, and we just triggered a bear retracement pattern, and, well, prices are getting whacked. There’s no support until the previous pivot low at $3,636, and it looks like we will go there.

Bears who pounced on the retracement setup that triggered on Tuesday are feeling smug this morning as their profits mount. Battered bulls praying for a higher low or at least some slowing momentum on the descent are shaking their heads in disgust. Patience, dear buyers, patience. Your time will come. For now, sellers are dominating, and this morning’s 2% drubbing did nothing to change that.

Video of the Day: Jedi Options – How to use the Options Strategy Matrix

Coach Tyler teaches how to effectively use the #OptionsStrategy Matrix at Tackle Trading to identify which options strategy to use when you’re bullish, bearish, or neutral.

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

Whacked at resistance. Back to support we go?

Today’s line up

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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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