Micron Earnings Boost Sandisk and Tech Stocks, Fed Inflation Data Awaited

Micron's positive earnings report is providing support to technology stocks, creating short-term upside potential for the Dow Jones Industrial Average (DJIA). Technical indicators are in neutral territory, with the RSI at 51.6, not signaling overbought or oversold conditions. The MACD line is above the signal line and positive, indicating weak bullish momentum. The price is trading above the 20-day and 50-day moving averages, reinforcing support levels. However, the market may adopt a cautious stance as it awaits Fed inflation data, which could limit upside expectations.

MU shares experienced a sharp decline of 8.4% in the last session, falling to 1048.5. The RSI has dipped below the neutral zone to 44, though it is not yet in oversold territory, suggesting the downtrend could continue. The MACD line is below the signal line and in negative territory, indicating weak momentum. The price closed below both the 20-day (1095.7) and 50-day (1085.3) moving averages, pointing to a weak short-term outlook. Despite positive news headlines, the deteriorating technical structure and cautious stance ahead of Fed data increase downside risks in the near term.

NDX fell 3.8% in the last 24 hours to 29,229, closing below its 20-day SMA (29,658) and 50-day SMA (30,005). The RSI at 37.4 is approaching oversold territory, but the MACD line remains below the signal line and in negative territory, indicating weak short-term momentum. While Micron's positive earnings news could provide short-term support for tech stocks, the market remains cautious ahead of Fed inflation data. The weakness in technical indicators and trading below key moving averages suggest the downtrend may continue.