Fed Warning Rattles Markets

GOOGL shares fell 2.3% in the last session to 387.44. The RSI is at 42, indicating weak momentum, while the MACD remains below its signal line in negative territory. The price is trading below both the 20-day (392.26) and 50-day (391.45) moving averages. The Fed's cautious remarks may dampen risk appetite, adding further selling pressure on tech stocks. The short-term downtrend is likely to persist.

The S&P 500 (SPX) is trading just above its 20-day simple moving average (SMA), with the Relative Strength Index (RSI) at 58, indicating a neutral zone. The MACD remains below its signal line, suggesting weak short-term momentum. Despite the Fed warning news, the price holding at the 7400 level suggests that the market has yet to establish a clear direction. While trading above the 50-day SMA supports the medium-term outlook, upside movement is expected to remain limited. Therefore, I anticipate a sideways trend in the short term.

Although NDX rose 1.86% in the last 24 hours, the RSI at 57 remains neutral, and the price closed just below the 20-day SMA (29,110). The MACD continues to stay below the signal line, indicating weak short-term momentum. A Fed warning could create unease in the markets, limiting upside and increasing selling pressure. Therefore, a downward movement can be expected in the short term.

The DXY is in overbought territory with an RSI of 73, increasing the likelihood of a short-term correction. While the Fed's warning has created unease in markets, temporarily boosting safe-haven demand, overbought conditions and selling pressure from elevated levels could pull the index lower. Although the MACD remains bullish, momentum may be signaling weakness. A pullback toward the 98.20 level (SMA50) is possible in the near term. However, a deeper decline would require an additional catalyst.