Fed's Waller: Rate Hike Could Be on the Table if Core Inflation Remains High

Fed Governor Waller's mention of a potential rate hike could create short-term selling pressure in the markets. Although the RSI on the SPX is at 45, indicating a neutral zone, the MACD remains below the signal line, showing weak momentum. The price is trading below the 20-day moving average (7544), signaling technical weakness. However, support near the 50-day moving average (7514) suggests that the decline may be limited. A pullback toward the 7500 level in the short term is highly likely due to the impact of this news.

Fed Governor Waller's signal of a potential rate hike could weaken market expectations for rate cuts and reduce risk appetite. Although the RSI on the NDX is near oversold territory at 38.3, the MACD remains below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages, indicating short-term weakness. The negative sentiment from the news, combined with the weak technical outlook, could create downward pressure. However, the low RSI levels may also trigger a potential rebound buying, so the downside expectation is high but not certain.