Fed Governor Cook: Ready to Act Quickly if Inflation Doesn't Slow

Although GOOGL shares rose 4.2% in the last close, a Fed official's inflation warning could limit risk appetite in the short term. With the RSI approaching overbought territory at 67, the MACD remains positive but momentum may weaken. While technical indicators point to a strong uptrend, the Fed's hawkish stance could lead to cautious waiting in the market. Therefore, short-term direction uncertainty is prominent.

A hawkish tone from a Fed member could revive market concerns over interest rate hikes. Although the S&P 500's RSI at 57.7 remains in neutral territory, the MACD above its signal line does not signal short-term weakness. However, the uncertainty generated by the news may cause the index to pull back from the 7,572 level. Being above the 20- and 50-day moving averages could limit the decline, but selling pressure may increase in the near term.

Hawkish comments from a Fed member could weaken expectations for interest rate cuts and negatively impact risk appetite. On the NDX, the RSI is neutral at 50, but the MACD is below zero and below its signal line, indicating short-term weakness. Although the price is trying to hold just above the 20- and 50-day moving averages, yesterday's 1.1% decline and the pressure from hawkish news increase the risk of these supports being tested. The likelihood of continued downward movement in the short term is high.

Although the DXY's RSI at 32 approaches oversold territory, the MACD line remaining below the signal line and the price staying under both the 20-day and 50-day moving averages confirm short-term weakness. While hawkish comments from Fed officials typically support the DXY, the market may have already priced in this rhetoric, and the current technical structure maintains a bearish bias. The 0.4% decline over the past 24 hours indicates continued selling pressure. However, the oversold zone and potential bargain buying could limit the pace of further declines.