RBC: Stocks Can Withstand Fed Rate Hikes, But Only a Limited Number

RBC shares have risen 3.5% in the last 24 hours, with the RSI at 69, indicating that the stock is approaching overbought territory in the short term. The MACD remains below the signal line, suggesting a weakening in momentum. News headlines note that equities can withstand Fed rate hikes, but only to a limited extent, which may have a balancing effect on overall market sentiment. While technical indicators maintain an upward trend, overbought signals and the cautious tone of the news increase the likelihood of a sideways movement in the short term.

Although the NDX's RSI at 60.7 is not yet in overbought territory, short-term momentum remains limited. While the MACD line is above the signal line, presenting a positive outlook, and the price is above both the SMA20 and SMA50, supporting an uptrend, RBC's emphasis on 'limited' scope suggests that interest rate hikes could pressure equities and cap upside movement. The 0.4% decline over the past 24 hours increases the likelihood of sideways trading. Therefore, no clear direction is expected in the near term.

The DXY is trading flat at 100.84, with the RSI at 53 in neutral territory. The MACD remains below the signal line, indicating short-term weakness. News suggests that Fed rate hikes may be absorbed by equities but remain limited, offering no clear direction for the DXY. Price action is squeezed between the SMA20 (100.88) and SMA50 (100.65), failing to provide a clear breakout signal. Therefore, a sideways trend is expected in the near term.