US Annual Inflation Hits Three-Year High in March

The NDX is in overbought territory with an RSI of 84.8, increasing the likelihood of a short-term correction. Higher-than-expected inflation could dampen risk appetite amid concerns that the Fed may delay interest rate cuts. Technically, while the MACD remains bullish, the combination of overbought conditions and negative news could trigger selling pressure. A continued rally appears challenging in the near term, though the magnitude of any decline may be limited.

High inflation data could strengthen expectations that the Fed will continue raising interest rates, potentially supporting the DXY. Technically, the RSI at 44 is in neutral territory, and the MACD is above its signal line, indicating potential for a short-term recovery. The price is just above the SMA20 but below the SMA50, suggesting that the upside may be limited. Despite a slight decline in the last 24 hours, the DXY could rise toward the 98.20-98.50 resistance zone on the inflation news.

Higher-than-expected inflation could increase concerns that the Fed may delay interest rate cuts, putting pressure on equities. GOOGL shares have risen 3.3% in the last 24 hours, with the RSI entering overbought territory at 71, raising the likelihood of a short-term correction. While the MACD remains bullish, a negative macroeconomic development such as the inflation data, combined with the overbought technical signal, could create selling pressure. Therefore, a short-term downward move is possible, though the magnitude of the decline may be limited.

Higher-than-expected inflation is increasing concerns that the Federal Reserve may delay or reverse its interest rate cuts. This could create a negative environment for equities. The SPX's RSI at 78.8, deep in overbought territory, raises the likelihood of a short-term correction or profit-taking. With technical overheating combined with macroeconomic headwinds, the index is likely to experience a pullback within 1-3 days.