BlackRock Strategist: Fed Has Time to Hold Rates Steady

BLK shares have fallen 7.6% in the last 24 hours, pushing the RSI to 17.8, deep into oversold territory. This technical condition suggests potential for a short-term recovery. A headline indicating the Fed may keep rates unchanged provides a positive signal for the market. However, with MACD and moving averages still weak, any upside may be limited. Overall, a short-term rebound is expected due to oversold conditions and positive news.

The DXY is in overbought territory with RSI above 70, suggesting limited upside in the short term. Although the MACD remains positive, it is hovering near the signal line, indicating weakening momentum. The headline news could support the dollar by increasing the likelihood of the Fed holding rates steady, but overbought conditions and technical resistance may cap gains. A sideways move or a slight correction is expected in the near term.

The news highlights the likelihood that the Fed will keep interest rates unchanged, which fails to provide a clear short-term direction for the USD. Technical indicators show a slight bullish bias, with the RSI at 60 and the MACD remaining above its signal line. However, the price trading just above the SMA20 and SMA50 suggests that the current upside may be limited. Therefore, a sideways movement is expected in the near term.

The news highlights the possibility of the Fed keeping interest rates unchanged, creating uncertainty for the market. The SPX is trading below its 20- and 50-day moving averages, with the RSI at 44, indicating a weak zone. The MACD is below the signal line and negative, suggesting weak short-term momentum. However, expectations of steady rates may limit selling pressure. Therefore, the short-term direction is unclear, and a sideways trend can be expected.