Hedge Costs Rise Ahead of Fed as S&P 500 Seeks to Defend $9 Trillion Rally

The S&P 500 fell 2.7% in its latest close, dropping below its 20-day moving average. The RSI stands at 42.9, indicating weak momentum, while the MACD remains negative below its signal line. Headlines show rising hedging costs ahead of the Fed, making it difficult to sustain an uptrend. In the short term, weak technical indicators and increased hedge costs could amplify downward pressure. However, since the index has not yet entered oversold territory, the decline may remain limited.

NDX fell 4.7% in the last 24 hours to 29,083, slipping below the 20-day SMA (29,232). RSI dropped to 41, signaling weakening momentum, while the MACD line remains below the signal line and in negative territory. Headlines indicate rising hedge costs ahead of the Fed, with increased demand for protection in the market, suggesting selling pressure may persist in the short term. The 50-day SMA (29,989) is higher, so even if a recovery attempt occurs, it is likely to face resistance.

The DXY is trading just below the 100 level, with technical indicators sending mixed signals. The RSI is in neutral territory around 55, while the MACD has made a slight bullish crossover but momentum remains weak. News headlines reflect rising hedging costs ahead of the Fed and concerns over sustaining the S&P 500 rally. This could prevent a clear directional move in the DXY in the short term. The proximity of the 20- and 50-day moving averages also supports a sideways trend.