A tactical bounce could be around the corner in the US. Things are oversold in the near term and the policy-setting Federal Open Market Committee's (FOMC) decision will be out on Wednesday, January 26, 2022.

Is there a huge amount of scope for the Fed to be even more hawkish given the market turmoil which its earlier comments have ignited? Logically it would not be the case. Two exchange traded funds (ETFs) which are widely tracked, the S&P500 and the NASDAQ, have got relative strength indexes (RSIs) of 25, essentially very oversold.

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Watch the accompanying video of CNBC-TV18’s Prashant Nair for more details.

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