US Stocks Extend Decline as Approval of Perpetual Futures Rattles Investors

GOOGL shares experienced a sharp decline of 6.76% in the last close, with the RSI entering oversold territory at 18.39. The MACD remains below the signal line and in negative territory, indicating weak short-term momentum. The price is trading below both the 20-day and 50-day moving averages, further weakening the technical outlook. Uncertainty over the approval of continuous futures contracts, as highlighted in recent news, along with the broader market downturn, could amplify selling pressure. However, the oversold condition may signal a potential short-term bounce, so my bearish expectation is expressed with limited confidence.

The news headline indicates that the approval of continuous futures has unsettled investors, leading to a continued decline in US stock markets. This negative sentiment could increase selling pressure in the short term. Technical indicators show the RSI at 65.5, remaining in neutral territory, while the MACD is below the signal line, suggesting weakening momentum. Although the price remains above the 20- and 50-day moving averages, the unease caused by the news and the ongoing downtrend persist. Therefore, a downward movement can be expected in the near term.

NDX is in overbought territory with an RSI of 74, increasing the likelihood of a short-term correction. The MACD line has fallen below the signal line, indicating weakening momentum. News headlines point to negative market sentiment, noting that the approval of perpetual futures has unsettled investors. Despite a 1.32% rise in the last 24 hours, technical indicators and news flow support a downward move in the near term. Therefore, a short-term bearish outlook emerges with moderate confidence.