Warsh's First Fed Meeting Signals New Era

The DXY has entered overbought territory with an RSI of 71, which is typically interpreted as a signal for a short-term correction. The MACD line is about to cross below the signal line, indicating weakening momentum. The news headline emphasizes the start of a new Fed era, which could create policy uncertainty in the markets and put some pressure on the dollar. Following a 0.71% rise in the last 24 hours, the overheating in technical indicators increases the likelihood of a short-term pullback. However, since the trend remains bullish, any decline is expected to be limited.

SPX closed just below its 20-day moving average (7501), which may serve as short-term resistance. The RSI at 52 is in neutral territory, indicating neither overbought nor oversold conditions. The MACD line remains below the signal line, suggesting weakening momentum. Although the headline points to the Fed's new term, it does not contain any concrete policy changes, so it may not have a significant directional impact on the market. In the short term, the index is expected to fluctuate around the 20-day moving average and search for direction.

NDX is trading with an RSI of 60.6, indicating it is neither overbought nor oversold, while maintaining positive momentum above the MACD signal line. The price remains above both the 20-day and 50-day moving averages, suggesting a solid medium-term structure. However, the headline points to the Fed entering a new phase, and this uncertainty calls for a cautious stance in the near term. The slight decline over the past 24 hours suggests the market has begun pricing in the news. Therefore, it is difficult to determine a clear short-term direction, as the market will await new policy signals.