Fed Raises Rates: New Rate Expectations from Major Banks Announced

After the Fed's rate hike, major banks' expectations have also been updated; this could create pressure on risky assets. SPX fell 1.49% in the last 24 hours to 7553, and RSI at 37.6 confirms weak momentum. MACD is in negative territory and below the signal line, and the price is also trading below the 20- and 50-day moving averages. In the short term (1-3 days), selling pressure is likely to continue, but RSI approaching oversold territory could lead to a limited rebound. Nevertheless, the overall outlook is bearish.

The Fed's rate hike is fundamentally supportive for the DXY; however, the market may have largely priced this in. Technical indicators point to a moderate upward trend: the price is above the SMA20 and SMA50, and the RSI is at 55, in neutral-positive territory. The MACD has remained slightly below the signal line, indicating limited momentum in the short term. The release of new interest rate expectations by major banks could increase uncertainty about the rate path and raise volatility. Therefore, in the 1-3 day outlook, I expect a moderate upward reaction, but additional confirmation is needed for a strong rally.