Wholesale Prices Unexpectedly Fell in June

The unexpected decline in wholesale prices in June, signaling reduced inflationary pressures, may heighten concerns over oil demand. Brent crude oil has lost nearly 2% in the last 24 hours, trading at $85.19. Although the RSI at 51 remains in neutral territory, the MACD crossing below the signal line indicates short-term weakness. The price trading just below the 20-day moving average ($85.36) suggests selling pressure could persist. However, the 50-day moving average ($84.15) stands as a nearby support level, and a potential hold at this level could limit further declines.

The news points to easing inflation pressures, which could be a positive signal for the market. However, the SPX is trading just below its 20-day moving average (7546), and the RSI is neutral at 53. The MACD line remains below the signal line, indicating weak short-term momentum. Therefore, despite the positive impact of the news, technical indicators do not provide a clear direction. A sideways trend can be expected in the short term.

Although the NDX closed slightly lower at 29,588, the RSI remains neutral at 52. The MACD line is trading above the signal line, indicating potential short-term upward momentum. The price is above both the 20-day and 50-day moving averages, presenting a technically supportive outlook. However, the unexpected decline in wholesale prices could be interpreted as a sign of easing inflationary pressures, which may boost rate cut expectations and be positive for the index. In the short term, further data and market reactions should be monitored to determine a clear direction.