US midterm elections signal restrictions on data center projects

EQIX has risen more than 4% in the last 24 hours, pushing its RSI14 to 71.6 and into overbought territory; this technical picture increases the risk of short-term profit-taking. A headline signal suggesting restrictions on data center projects creates uncertainty that directly touches EQIX's growth narrative and could lead to weakening momentum. However, since the headline is not yet a concrete regulation but only a political signal, the impact is likely to remain limited. The MACD being above its signal line and the price trading above the SMA20/SMA50 indicate that the medium-term trend remains positive. Therefore, I expect a mild downward correction in the 1-3 day outlook, but with a moderate level of confidence.

DLR rose 3.7% in the last 24 hours, breaking above its SMA20 and SMA50, with RSI at 66 approaching overbought territory. MACD is above the signal line and momentum is strong, but news raises the risk of regulatory restrictions on data center projects; such a development could be perceived as negative in the short term for a data center-focused REIT like DLR. Nevertheless, since the news does not yet contain a concrete law or decision and technical indicators remain strong, the impact is likely to be limited. Short-term profit-taking may occur; the SMAs at the 179 level should be watched as support.