HAWKISH FED PUSHES STOCKS SHARPLY LOWER -- MAJOR INDEXES SUFFER DOWNSIDE REVERSAL DAY -- 200 DAY AVERAGES PROVIDE RESISTANCE

50-BASIS POINT HIKE ON THE TABLE FOR FED MAY MEETING... Today's statement by Fed Chairman Jerome Powell that a 50-basis point rate hike was on the table for May, combined with other hawkish comments, pushed stocks sharply lower today.   And their technical condition continues to weaken.  Particularly disturbing is the fact that 200-day moving averages are providing overhead resistance.  Chart 1 shows the Dow Industrials suffering a downside reversal day and closing below their 200-day moving average.  Chart 2 shows the S&P 500 reversing lower after touching its 200-day line.  The Nasdaq market continues to lead the rest of the market lower.   Chart 3 shows the Invesco QQQ Trust having the day's biggest percentage decline and falling to the lowest level in more than a month.   All in all, a bad chart day for stocks.

ALL SECTORS END IN THE RED... All eleven sectors are also ending the day in the red.   Defensive consumer staples held up better than the rest of the market and closed only marginally lower. Real estate and healthcare also show smaller losses.     Energy, communication services, and technology were the day's biggest percentage losers.   Small caps also had a relatively weak day.  Another jump in bond yields contributed to today's stock selling.   Technical readings continue to indicate that stocks have probably peaked and are likely to be hurt by a more hawkish Fed.   The fact that money has continued to favor more defensive stock groups also adds to general pessimism on the direction of stocks.