Morgan Stanley Strategists: Correction in US Markets Is Ending

Morgan Stanley strategists' statement that the correction in US markets has ended could support risk appetite and create a buying bias in the short term. However, technical indicators are mixed: the price is slightly below the SMA20, MACD is in negative territory and below its signal line, while RSI is at a neutral 51 level. This picture suggests that the upward impact of the news may remain limited and that the price needs to settle above the SMA20 around 188 for confirmation. Since the 24-hour change is nearly flat, the market appears not to have priced in the news yet. Overall, while I expect a moderately positive trend, I keep confidence at a medium level.

GOOGL fell sharply by 11.6% in the last 24 hours to 283.23, with its RSI at 33.9 approaching oversold territory. Morgan Stanley's statement that the correction is over could support risk appetite in the short term and trigger bargain hunting. However, the price is trading below the SMA20 (290.7) and SMA50 (309.4), the MACD is in negative territory, and momentum is weak. Therefore, although the news is perceived positively, the technical picture is fragile; the rebound may be limited. A slight upward recovery is more likely in the 1-3 day horizon, but a close above the SMA20 should be monitored for confirmation.

Morgan Stanley strategists' view that the correction has ended may support risk appetite in the short term. However, the technical picture is weak: the price is below the SMA20 and SMA50, and MACD is in negative territory and below the signal line. RSI is at 45, in neutral-to-weak territory, with no oversold signal. Although the news is a positive catalyst, the indicators do not yet confirm a reversal; therefore, a moderate upward bias is expected, with limited confidence.

The NDX has fallen 3.67% over the past 24 hours, dropping below both its SMA20 and SMA50, while its RSI at 38.8 is approaching oversold territory. Morgan Stanley strategists' statement that the correction has ended, combined with the oversold technical picture, could trigger short-term bargain buying. However, MACD remains in negative territory and below its signal line, indicating that momentum is still weak. The news catalyst's impact may be limited; a move above SMA20 should be monitored for confirmation. Confidence level should be kept at moderate.