Fed Minutes Signal Possibility of Rate Hike

The Fed minutes indicating a potential rate hike could create short-term upward pressure on the DXY. However, current technical indicators show a weak outlook, with the RSI at 47 in neutral territory and the MACD just below the signal line and negative. The price is trading below the 20- and 50-day moving averages, suggesting any upside may be limited. Despite the positive news, the technical picture points in the opposite direction, so the expectation for a rally is cautious.

The Fed minutes indicating a potential rate hike could increase tightening concerns in the markets and create selling pressure in the short term. Although the RSI on the SPX is in neutral territory at 57.6, the MACD being above the signal line supports upward momentum. However, the price being above the SMA20 and SMA50 suggests that any decline may be limited. The slight decline over the past 24 hours (-0.055%) and the uncertainty generated by the news could trigger a downward move in the short term. Nevertheless, the current technical structure may prevent the decline from deepening.

The indication of a potential interest rate hike in the Fed minutes could suppress risk appetite, leading to short-term selling pressure on the NDX. Technically, the RSI at 58.9 remains in neutral territory, while the MACD above its signal line maintains upward momentum. However, the expectation of a rate hike poses a risk of the index retreating toward the SMA20 (28965) and SMA50 (29134) levels, as it could particularly negatively impact growth stocks. The limited 0.03% rise in the last 24 hours suggests the market has not yet fully reacted to the news. While a bearish bias prevails in the short term, a sharp sell-off is not expected.