Tech Selloff on Wall Street and Anticipation of Inflation Data

GOOGL is trading below its SMA20 and SMA50, and the short-term trend is weak. The RSI is at 42, in neutral-to-weak territory, while the MACD is slightly below its signal line. Selling pressure on technology stocks on Wall Street and a cautious stance ahead of inflation data increase downside risk in the short term. However, the MACD's proximity to its signal line and the RSI not being in oversold territory limit the likelihood of a sharp decline. Therefore, a slightly downward but volatile course is expected in the 1-3 day outlook.

The NDX fell sharply by more than 6% in 24 hours to 26,647 and is trading markedly below its SMA20/SMA50, confirming that the short-term trend is downward. RSI14 at 22.4 places it in oversold territory, raising the likelihood of relief buying, though this alone is not a reversal signal. MACD is negative and below its signal line, with momentum still weak. The tech selloff cited in news headlines and uncertainty over inflation data are weighing on risk appetite; cautious positioning may persist ahead of the data. For the next 1-3 days, the downward bias stands out, accompanied by volatility driven by oversold conditions.

The S&P 500 declined 3.3% over the past 24 hours, slipping noticeably below both the 20‑day and 50‑day simple moving averages, indicating a breakdown in the short‑term trend. The 14‑period RSI sits at 24.4, placing the index in an oversold region and raising the probability of a rebound, though this alone does not constitute a reversal signal. The MACD line is below its signal line and resides in the negative zone, confirming that momentum remains bearish. Uncertainty surrounding the upcoming technology earnings season and inflation data is weighing on risk appetite, suggesting a cautious stance ahead of the data release. Over the next one to three days, I anticipate a modest downward bias, with volatility rather than a sharp decline due to the oversold conditions.

QQQ fell 6.2% in 24 hours, dropping significantly below its SMA20 and SMA50; the short-term trend is downward. RSI14 at 22.4 places it in oversold territory, which increases the likelihood of rebound buying but is not a reversal signal on its own. MACD is below the signal line and in negative territory, indicating weak momentum. Uncertainty over upcoming inflation data could keep volatility elevated. Although downward pressure is expected to persist for 1-3 days, choppy trading is anticipated rather than a sharp decline due to oversold conditions.