Fed Minutes: Inflation Risk Brings Rate Hike Back to the Table

The mention of inflation risk raising the possibility of a rate hike in the Fed minutes could create upward pressure on the DXY in the short term. However, technical indicators present a weak outlook: the RSI is near oversold territory at 36, the MACD is below the signal line, and the price is trading below both the 20-day and 50-day moving averages. Therefore, upside potential may be limited, and the market's reaction could take time. While a short-term upward move is expected, caution is warranted due to the current technical weakness.

The Federal Reserve's minutes emphasizing inflation risks and the possibility of a rate hike could weaken dovish expectations in the markets. Although the S&P 500's RSI is neutral at 55, the MACD remaining negative below its signal line indicates short-term weakness. While the price staying above the 20-day SMA provides some support, its proximity to the 50-day SMA and yesterday's slight decline suggest that selling pressure may increase due to the news. Therefore, a short-term downward movement can be expected, but there are no extreme signals yet for a sharp decline.

The Federal Reserve's meeting minutes emphasized inflation risks and brought rate hikes back into discussion, potentially increasing market sensitivity to interest rates. Although the NDX experienced a slight 24-hour decline, the RSI at 56 remains neutral, and the price is above both the 20-day and 50-day moving averages. However, while the MACD line is above the signal line, it is not in positive territory, indicating weakening momentum. In the short term, expectations of a rate hike could pressure technology stocks, but the current technical structure does not signal a definitive downturn.