Fed Chair Warsh: Inflation Target Will Not Change

Despite the DXY's RSI14 being in oversold territory at 28.4, the price trading below both the SMA20 and SMA50, along with the MACD remaining below its signal line in negative territory, supports a short-term bearish trend. Fed Chairman Warsh's statement that the inflation target will remain unchanged reinforces expectations of a continued monetary policy stance, which could negatively impact the dollar. The 0.54% decline over the past 24 hours indicates sustained selling pressure. However, oversold conditions may trigger a short-term corrective bounce, limiting the confidence in the bearish outlook to moderate.

The S&P 500 (SPX) is trading below its 20- and 50-day moving averages, with the Relative Strength Index (RSI) approaching oversold territory at 32. The MACD line remains below the signal line and in negative territory, indicating weak short-term momentum. Fed Chair Warsh's statement that the inflation target will remain unchanged could weaken rate cut expectations, adding pressure on the market. Given the weakness in technical indicators and the potential impact of the news, the index is expected to maintain its short-term downward trend. However, the RSI nearing oversold levels raises the possibility of some buying interest on dips.

NDX fell 3.4% in the last 24 hours to 27,211, with the RSI approaching oversold territory at 31. The MACD line is below the signal line and in negative territory, indicating weak short-term momentum. The price is trading below the 20-day SMA (27,721) and 50-day SMA (28,309), confirming a weak technical outlook. Fed Chair Warsh's statement that the inflation target will remain unchanged may weaken rate cut expectations, putting pressure on tech stocks. The short-term downtrend is likely to continue, though some recovery may occur due to oversold conditions.