Fed's July Rate Decision Triggers Market Volatility

The volatility in markets following the Fed's interest rate decision could increase short-term uncertainty. Although the SPX closed above its 20-day moving average, remaining below the 50-day moving average may limit upward movement. The RSI at 53 indicates it is neither in overbought nor oversold territory. While the MACD remains in negative territory, its approach toward the signal line may suggest a slight improvement in momentum. Therefore, it would be healthier to wait for the market to fully price in the rate decision before determining a clear direction.

Following the Fed's interest rate decision, short-term direction uncertainty prevails in the NDX. Although the price closed above the 20-day moving average, it remains below the 50-day moving average. The RSI stays in neutral territory at 53, while the MACD is still in negative territory but approaching the signal line. This technical outlook suggests that the market is seeking a new equilibrium after the volatility triggered by the rate decision. More price confirmation should be awaited to determine a clear short-term direction.

The DXY declined 0.83% to 100.05 following the Fed's interest rate decision. Despite the RSI at 24.9 indicating oversold territory, the MACD remains below the signal line and in negative territory. The price staying below the short-term SMA20 (100.67) and SMA50 (101.05) suggests the downtrend could continue. However, oversold conditions may trigger some buying interest, so the bearish outlook is maintained with medium-high confidence but limited scope.