JPMorgan Strategist: The Safest Move for the Fed Is to Wait

The news headline indicates that the Fed has adopted a cautious stance on interest rate decisions, recommending a wait-and-see policy. This could create short-term uncertainty in the markets but may not directly trigger selling pressure. In technical indicators, the RSI is at 58.6, in neutral territory, while the MACD remains below the signal line, indicating weakened momentum. Although the price is above the 20-day and 50-day moving averages, the weakening in the MACD suggests that the upward momentum is losing steam. Determining a clear direction in the short term is difficult, so a neutral outlook prevails.

The S&P 500 (SPX) closed 2.7% lower in the last session, slipping below its 20-day moving average. The RSI is in weak territory at 43.8, while the MACD is trending negatively below its signal line. A JPMorgan strategist's comment that the Fed should hold rates could delay market expectations for rate cuts. The weakness in technical indicators, combined with the uncertainty generated by the news, suggests that selling pressure may persist in the short term.

The NDX fell 4.5% in the last 24 hours to 29,161, closing just below the 20-day moving average of 29,207. The RSI at 43.5 has dipped below the neutral zone but has not yet entered oversold territory. The MACD line remains below the signal line and in negative territory, indicating weak short-term momentum. A JPMorgan strategist's comment that the Fed should hold rates could weaken market expectations for rate cuts, potentially adding further pressure on tech stocks. Trading well below the 50-day moving average of 29,966 suggests the downtrend may continue.