US May Non-Farm Payrolls Surpass Expectations: 172K

GOOGL shares closed 1.85% lower in the last session, but the RSI at 52 remains in neutral territory. The MACD is still negative but approaching the signal line, which could signal a weak improvement in momentum. The price remains above the 20-day SMA but below the 50-day SMA, indicating short-term indecision. While stronger-than-expected US non-farm payroll data could boost overall market sentiment, technical indicators for GOOGL do not provide a clear direction. Therefore, a sideways trend is expected in the near term.

Strong employment data sends mixed signals to markets in the short term. While non-farm payrolls exceeding expectations indicate a resilient economy, they may reduce expectations for interest rate cuts, putting pressure on equities. Technically, the RSI approaching oversold territory at 32 and the price trading below the 20- and 50-day moving averages suggest potential for a short-term recovery. However, the MACD remaining below the signal line and in negative territory indicates that bearish momentum could persist. Therefore, a sideways movement is expected until a clear directional signal emerges.

NDX is under strong selling pressure, with the RSI entering oversold territory at 27. The MACD line is well below the signal line and in negative territory, indicating weak short-term momentum. The price is trading below both the 20-day and 50-day moving averages, further weakening the technical outlook. Better-than-expected non-farm payroll data may reduce rate cut expectations, adding additional pressure on technology stocks. However, due to oversold conditions and the possibility of a short-term bounce, our bearish outlook is limited with moderate confidence.

Strong non-farm payrolls data could provide short-term support for the DXY, confirming the resilience of the US economy. Although the RSI above 70 indicates overbought territory, the MACD above its signal line suggests continued upward momentum. The price trading above the 20- and 50-day moving averages also supports the bullish trend. However, due to overbought conditions, some profit-taking may occur in the short term, posing a risk of limited upside.