Strong Non-Farm Payroll Data Raises Expectations for December Rate Hike

Strong non-farm payrolls data could curb risk appetite by raising expectations of interest rate hikes. Although the RSI on the SPX is approaching oversold territory at 31, the MACD remains below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages, indicating short-term weakness. The 1.4% decline over the past 24 hours suggests continued selling pressure. However, oversold conditions may limit the pace of the decline.

Despite the NDX's RSI being in oversold territory at 26.5, the MACD remains negative and below its signal line. The price is trading below both the 20-day and 50-day moving averages, indicating short-term weakness. The 2.55% decline over the past 24 hours suggests continued selling pressure. Therefore, downward movement is expected to persist in the near term.

Strong non-farm payrolls data reinforces expectations that the Fed will continue raising interest rates, supporting the DXY. Technically, although the RSI is in overbought territory above 70, the MACD remains above the signal line and in positive territory, indicating sustained upward momentum. The price is trading above both the 20-day and 50-day moving averages, confirming a short-term upward trend. However, due to overbought conditions, there is a risk of a short-term correction, so the bullish outlook should be approached with caution.