Stocks Edge Higher After Fed Rate Hike, Dollar Strengthens on Short-Term Yields

The slight rise in stocks following the Fed rate hike presents a mixed short-term signal for GOOGL. The price at 342.85 is below the SMA20 (345.30) and above the SMA50 (339.33), indicating short-term weakness but medium-term support. RSI at 49.4 is neutral, while MACD below the signal line (1.06 vs 1.68) points to negative momentum. A strengthening dollar and rising short-term yields are generally negative for tech stocks, but the mild uptick offsets this. I expect sideways movement for 1-3 days, with resistance at 345.30 and support at 339.33 to be monitored.

DXY is at 100.24 and has risen 0.66% in 24 hours. Although RSI at 66.4 is approaching overbought territory, there is no confirmation yet. MACD is slightly above the signal line and the price is above SMA20 and SMA50, indicating positive short-term momentum. The dollar's strengthening on short-term yields after the Fed rate hike supports the news flow. An upward trend is likely for 1-3 days, but the RSI approaching the overbought threshold suggests limited upside potential.

Although the news headline suggests stocks edged higher after the Fed rate hike, the current technical picture is weak. The SPX has fallen 1.49% in the last 24 hours, with RSI at 37.6, indicating weakness but nearing oversold territory, while MACD is negative and below the signal line. The price is trading below the SMA20 and SMA50, suggesting continued short-term pressure. The 'slight rise' in the news may indicate limited bargain hunting, but there is no confirmation of a trend reversal. Therefore, the direction over the next 1-3 days is uncertain, and any rebound may be limited.

The modest rise in stocks following the Fed's rate hike indicates that the market had largely priced in the decision and that there was no hawkish surprise. QQQ's last close at 704.75 is below its 20-day and 50-day simple moving averages; with RSI at 41.7 and MACD in negative territory, this points to weak short-term momentum. The dollar's strength on short-term yields could create valuation pressure on tech stocks and limit upside. Therefore, in the 1-3 day outlook, it is difficult to discern a clear directional bias; rebound buying may remain limited. Optimism in the news flow is offset by weak technical indicators, so a neutral stance is more prudent.