Fed Holds Rates Steady, Split Vote Raises Inflation Concerns

The S&P 500 (SPX) is trading below its 20- and 50-day moving averages, with the Relative Strength Index (RSI) at 32, approaching oversold territory. The MACD line remains below the signal line and in negative territory, indicating weak short-term momentum. Although the Federal Reserve held interest rates steady, a split vote suggests rising inflation concerns, which could exert further pressure on the market. The combination of weakening technical indicators and uncertainty from the news suggests the index may continue its short-term downtrend. However, the RSI nearing oversold levels could signal a potential bounce, so while the bearish outlook is strong, the downside may be limited.

NDX fell 3.4% in the last 24 hours to 27,211, with the RSI approaching oversold territory at 31. The MACD is below the signal line and in negative territory, indicating weak short-term momentum. The price is trading well below the 20-day and 50-day moving averages (27,722 and 28,309, respectively). Despite the Fed keeping rates unchanged, a split vote has heightened inflation concerns, potentially adding further pressure on the market. The short-term downtrend is likely to continue.

The DXY has entered oversold territory with its RSI14 at 27, suggesting a potential short-term technical bounce. However, the MACD line remains below the signal line and in negative territory, indicating continued bearish momentum. The price is trading below both the 20-day and 50-day moving averages, pointing to a weak overall trend. Although the Fed kept interest rates unchanged, the split vote has heightened inflation concerns, which could put pressure on the dollar. In the short term, the downtrend is likely to persist, but oversold conditions may lead to some consolidation or a slight rebound.