Wall Street Prepares for Potential Rate Hike Ahead of Fed Meeting

GOOGL's technical indicators are giving mixed signals in the short term. The RSI at 63.8 is approaching overbought territory and the MACD is below its signal line, indicating weakening momentum. The price is above the SMA20 but trading close to the SMA50, suggesting entry into a horizontal resistance zone. News of a possible rate hike ahead of the Fed meeting could pressure growth stocks and reduce risk appetite. Therefore, a downward move is more likely in the short term, but the impact of the news may be limited.

The expectation of a possible rate hike before the Fed meeting may suppress risk appetite and create a downward trend in the short term. However, the price being above the SMA20 (7634) and very close to the SMA50 (7671) indicates that selling pressure may remain limited. The RSI is at 56, in neutral territory, and although the MACD is negative, it is above the signal line, suggesting that momentum has not completely deteriorated. The news may already be largely priced in; therefore, a volatile course rather than a sharp decline can be expected. Nevertheless, the uncertainty before the meeting and a possible hawkish tone increase the downside risk in the 1-3 day horizon.

Expectations of a possible rate hike ahead of the Fed meeting could suppress risk appetite. NDX has declined 0.5% in the last 24 hours and MACD is below the signal line in negative territory, indicating weak short-term momentum. However, RSI is neutral at 55 and the price is just above the SMA20 and SMA50, which does not signal a sharp decline. Since the news flow is focused on rate hikes, downward pressure is possible in the 1-3 day horizon, but uncertainty is high. Nevertheless, considering the cautious stance before the Fed and weak MACD, the short-term direction is biased downward.

The news reflects expectations of a possible rate hike ahead of the Fed meeting; this is generally a supportive factor for the DXY. Technical indicators also point to a moderate recovery: the price is above the SMA20 and SMA50, and the RSI is at 57, in neutral-positive territory. However, the MACD is below the signal line and the 24-hour change is limited. The rate hike expectation may already be priced in; therefore, the upward movement may remain limited. In the short term, I expect a slight upward bias, but the risk of volatility due to the Fed statement is high.