CPI Below Expectations, Markets Ease

The drop in CPI expectations below forecasts created a general sense of relief in the markets, and technology stocks typically benefited from such positive macro developments. GOOGL is trading above its 20-day SMA and above the MACD signal line, which supports an upward trend in the short term. The RSI at 55 is not in the overbought zone, indicating that the price has not yet experienced a full-blown rally. Being close to its 50-day SMA, it could serve as resistance in the short term, but given the overall positive environment, a slight increase can be expected within 1-3 days. Therefore, the short-term direction is upwards, but it should be closely monitored with consideration of the risks.

The lower-than-expected CPI data has alleviated inflation concerns, leading to a relief rally in markets. This strengthens expectations of an interest rate cut, providing a positive catalyst for the tech-heavy NDX index. Technically, the RSI at 52 is in neutral territory, while the MACD is above its signal line and positive, supporting short-term upward momentum. The price trading above both the 20-day and 50-day moving averages confirms the bullish trend. However, yesterday's slight decline and the index's proximity to new highs warrant caution.

The DXY continues its downward trend following the release of CPI data that came in below expectations. The RSI remains in weak territory at 44, while the MACD is trading negatively below the signal line. The price is trading below both the 20-day and 50-day moving averages. In the short term, bearish pressure is likely to persist, but since the index has not entered oversold territory, the pace of the decline may remain limited.

The CPI data coming in below expectations has alleviated inflation concerns, leading to a relief in markets. This could support gold prices as lower inflation reduces expectations of interest rate hikes. Technically, the RSI is at 47 in neutral territory, and the MACD has started to rise above the signal line, indicating short-term upside potential. However, the price being well above the 20- and 50-day moving averages suggests it is approaching overbought levels. Therefore, there is a risk that the rally may be limited.