Fed Chair Warsh Holds Rates Steady in First Press Conference

The Fed's decision to keep interest rates unchanged was in line with market expectations, thus not creating a major short-term surprise. Although the RSI on the SPX is approaching oversold territory at 35.8, the price remaining below the 20-day moving average (7524) indicates weak momentum. The MACD line trading below the signal line and moving into negative territory suggests insufficient strength for an upward breakout in the near term. Therefore, the market is expected to move within a horizontal band at current levels or experience a slight correction.

The Fed's decision to keep interest rates unchanged was in line with market expectations, thus not creating a major short-term surprise. The NDX is trading below its 20-day moving average (30,212), with the RSI at 40 indicating weak momentum. The MACD remains below the signal line, while the 50-day moving average (29,563) stands out as a nearby support. Therefore, the index is expected to follow a sideways trajectory in the short term, fluctuating within the 29,500-30,200 band.

The DXY is in overbought territory with an RSI of 78, increasing the likelihood of a short-term correction. Fed Chair Warsh's decision to hold interest rates steady may pressure the dollar, as the market had anticipated more hawkish steps. Profit-taking could follow the 0.84% gain over the past 24 hours. Despite a positive MACD, overbought signals and disappointment from the news support a downward move in the near term.