CPI Inflation to Guide Fed's First Warsh Meeting

The SPX declined 2.7% in 24 hours to 7,386, closing below both its 20-day (7,403) and 50-day (7,512) moving averages. The RSI is weak at 42.9, while the MACD remains negative below its signal line. With CPI inflation data set to guide Fed Chair Warsh's first meeting, increased uncertainty could trigger selling pressure. The short-term technical outlook is weak, and the news flow supports downside risks.

NDX dropped 4.7% in the last 24 hours to 29,083, closing below both its 20-day (29,232) and 50-day (29,989) moving averages. The RSI at 41.3 has fallen below the neutral zone, indicating weakening momentum. The MACD line is below the signal line and in negative territory, confirming a short-term bearish trend. The CPI inflation data, which will guide the Fed's first Warsh meeting, could increase market uncertainty and trigger selling pressure. While the likelihood of further decline in the short term is high, caution is advised as the index has not yet entered oversold territory.

The DXY is trading just below its 20- and 50-day moving averages, with the RSI at 50.9 in neutral territory. The MACD is above zero but close to the signal line, indicating weak momentum. The CPI data will be a critical determinant ahead of the Fed's first Warsh meeting; an inflation reading above expectations could push the DXY higher, while a lower-than-expected figure may create selling pressure. In the short term, a neutral outlook prevails due to directional uncertainty.