Cooling US Employment Data Provides Relief for Fed and Stock Markets

The news headline indicates that the cooling in employment data has reduced pressure on the Fed to raise interest rates, positively impacting the stock market. GOOGL shares rose 1.92% in the last close, with an RSI of 58 in neutral territory, not signaling overbought conditions. Although the MACD line remains below the signal line, it is in positive territory, and the price is trading above both the 20-day and 50-day moving averages. This technical structure supports short-term upside potential due to the positive news impact. However, I do not have high confidence due to the weakening in the MACD and the fact that it does not fully reflect the overall market reaction.

The news headline indicates that the cooling in employment data has reduced pressure on the Fed to raise interest rates, which has been positively reflected in the market. Technically, although the SPX closed just below the 20-day moving average (7487), it managed to stay above the 50-day moving average (7425), with the RSI at 54 in neutral territory. While the MACD line remains below the signal line, the narrowing gap signals improving momentum. In the short term, this positive news flow and technical recovery effort increase the likelihood of the index testing and breaking above the 20-day moving average. However, confidence remains low as the MACD is still below the signal line, and it remains to be seen whether the rally is supported by volume.

The news headline indicates that cooling employment data has reduced pressure on the Fed to raise interest rates, positively impacting the stock market. This could increase risk appetite in the short term and support a recovery in the NDX. However, technical indicators remain weak: the RSI is near oversold territory at 37, the MACD is negative, and the price is below both the 20-day and 50-day moving averages. Therefore, any upside expectations should be cautious, as strong resistance may be encountered.

The DXY is exhibiting a technically weak outlook. The RSI is approaching oversold territory at 38, while the price is trading below both the 20-day and 50-day moving averages. The MACD line is below the signal line and in negative territory, indicating that short-term bearish momentum continues. The news headline notes that cooling US employment data is reducing pressure on the Fed, which could have a weakening effect on the dollar. The 0.55% decline over the past 24 hours supports this expectation. The downtrend is likely to persist in the short term, but the RSI approaching oversold territory could signal a potential corrective bounce.