US May Inflation Matches Expectations

May inflation data came in line with expectations, preventing sudden volatility in the market. The SPX index closed with a 2.7% decline in the last session and is trading below its 20-day moving average. The RSI stands at 42.9, near neutral territory, while the MACD continues its negative trajectory below the signal line. In the short term, the impact of the inflation data may remain limited, but technical indicators point to weakness, leaving no clear directional signal.

NDX has declined 4.7% in the last 24 hours to 29,083. The RSI at 41.3 has moved below the neutral zone but is not yet in oversold territory. The MACD line is below the signal line and in negative territory, indicating weak short-term momentum. The price is trading just below the 20-day SMA (29,232) and well below the 50-day SMA (29,989). While inflation data in line with expectations could provide short-term relief, the deterioration in the technical structure and ongoing selling pressure persist.

The DXY is trading at 99.88, trapped between its 20-day SMA (99.94) and 50-day SMA (99.93). The RSI at 46.8 is in neutral territory, while the MACD is below the signal line and near negative territory, indicating weak short-term momentum. Inflation data coming in line with expectations reduced the likelihood of a surprise shift in Fed policy, failing to provide a clear directional catalyst for the DXY. Technically, the index is stuck in a narrow band between 99.80 and 100.00, and without a new catalyst, it is expected to remain within this range.