The sell-off in equities took on a new dimension on Monday with the S&P 500 falling nearly 4.0% by the end of the day. The move not only confirms the greater market reversal that is in play but the lowest targets for the bottom which are near the 2,800 level. With the sell-off gaining momentum and no changes to fundamentals in sight, investors should view any upward movement in price action as an opportunity to sell.

The next big moves may come later in the week after the FOMC announces the next policy change. The committee is expected to hike rates by at least 50 basis points and there is a growing risk it could be more. Even if the Fed only raises rates by 50 basis points this month, there is a near certainty a 75 basis point interest rate hike will come in July. The takeaway for equities is the cost of borrowing money is on the rise in the face of rising input costs and both are squeezing margins.